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2BC BLOG

The Crushing Weight of Pay Day Loans by Les Weirich

Second Hope is a ministry of 2BC that helps people get out from underneath the crushing burden of payday loans. The program has been operating since November 2016. Over 25 households have been helped by this ministry. One example of how crushing these loans can be is a Second Hope client who took out payday loans of $1500.00 approximately five years ago. Over that period of time the client has repaid over $20,000.00 and still owes the original amount. This is due to constant renewing and taking out any small cash credited toward the principal balance. This would have amounted to approx. $500/$1000 at most. So for receiving an estimated $2000/$2500 over 5 years, the client has paid over $20,000 and still owed $1500.00.

Second Hope Report as of the End of April 2019

  • First loan made November 2016
  • 25 client loans made totaling $22,000.00
  • Est. payday loan value (365% int.) $80,300.00
  • Est. client savings $58,300.00
  • 3 loans in default totaling $2,000.00
  • Available funds uncommitted $5,000.00

All numbers are rounded. 

This has been a learning experience The primary problem being communications after the loan is made. Consequently, we are making some changes to our process by tying our program more closely with other benevolent services i.e., In As Much, Hillcrest Hope & Good Samaritans. Most of our clients utilize these services on a regular basis so we can communicate with them on a regular basis to review their status. Connection with these services has also increased demand for Second  Hope services. We need more volunteer coaches and additional funds to secure additional loans in a shorter time period. 

If you would like to contribute time or funds to this ministry, please contact Les Weirich or Charlie Hughes. Their contact information is available on The Hub, or by calling the church office at 816-781-2824. If you need help getting out of the trap of payday loans, please call the church office (816-781-2824) and one of our coaches will be in contact with you.

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