About Our Loans
The Save It! Loan is offered as a benefit to you by your employer.
They are collaborating with the Appalachian Federal Credit Union and MACED,
a non-profit organization to offer you this benefit for two reasons.
Simply a Better Deal
First, if and when you need an emergency loan, this product offers a
much better deal than payday loan shops. The payday loan industry is
bad news. They loan you money without regard to your ability to pay it
back. If you can’t pay the loan back in two weeks, they will happily allow
you to pay just the interest. That interest adds up. This is called
“rolling over” the loan.
Keep the Savings
With the Save It! Loan you meet your immediate needs and begin saving
for the next time an emergency pops up. When you take out a Save It! Loan,
a savings account is opened in your name with an amount equal to half your
loan amount. (If you borrow $100, a savings account is opened with $50.
If you borrow $500, a savings account is opened with $250.)
Take Your Time
Of course, you will pay back both the loan and the savings amount, but
over ten months instead of two weeks offered by the payday loan shops.
What’s more, you pay no interest on the savings portion. Instead, your
savings account starts earning five percent interest from the day you
take out the loan. When you finish paying off your loan, the money in
the savings account is yours.
Did you know?
The average payday loan is rolled over eight times. That means
the average payday loan consumer will pay approximately $796 in
interest and fees for a $325 loan.