CHESTERFIELD, Va. -- Chesterfield FCU will once again offer its Holiday Help Loan payday as an alternative to expensive payday loans for the 2012 holiday season.
A Holiday Help Loan offers approval for a small, short-term loan to current members who have been employed by the same employer or receiving retirement or disability benefits for at least two years. Loan amounts range from $300 – $1000 with terms available from four months to nine months.
A typical $500 payday loan will charge $119.79 in fees and interest for a 30-day loan. This equates to a 584% APR. An equivalent $500 Holiday Help Loan offers a 17.95% APR for six months for members with at least five years of consecutive employment. Monthly payments for this loan are $87.82, with total interest charges of $26.54. This represents a savings of $93.25 for the member, in addition to the benefit of smaller monthly payments, rather than a lump sum payment.
Last year, 274 members took advantage of a Holiday Help Loan, saving them over $32,228 in potential payday loan fees.
The Holiday Help Loan is available for existing members starting November 13th until December 31st
