A member came to us after her daughter talked her into a loan to help with financial hardship. The member is deaf and had always trusted her daughter with her finances — but this time, that trust nearly cost her everything.
She had taken out a loan over the weekend and already owed $4,900. The terms were devasting: a 36-month loan at 203.39% interest, with monthly payments of $704.87. In total, she would have repaid more than $25,370 on just $4,164 financed. When I showed her the interest rate, she grabbed her chest and her mouth dropped. Panic set in. I told her, “Don’t worry — we’re going to get you out of this.”
We refinanced her auto loan, giving her 60 days of no interest and 90 days of no payments, keeping the same terms but lowering her payment to just $43 per week. Under the original loan, interest accrued first. She never would have touched the principal. She earns only $356 per paycheck folding T-shirts. A $705 monthly payment would have meant losing her car, her job, and, eventually, her home — all over a $4,000 loan.
The relief on her face said everything. She thanked us over and over. In that moment, I knew this is exactly why I’m here — to protect our members.
This story was submitted by CU Strategic Planning, a Callahan company, on behalf of Carolina Foothills FCU.
