The focus of the Coalition for Safe Loan Alternatives (CSLA) is to identify and share information about better credit choices for consumers in financial need.
A recent survey released by Bankrate.com showed that 63% of Americans are not financially prepared for a financial emergency of $1000 – like a car repair or medical co-pay. For the 26 million people nationwide with poor or limited credit, their options have often been limited. Millions of consumers are trapped in a cycle of debt, paying 400+% APR on payday loans or risking their car title for a few hundred dollars. These consumers end up paying more in interest and fees than what they originally borrowed, because they didn’t know how to find better alternative alternatives.
Foundations, organizations, and policymakers are interested in credit-building, safe, affordable loans that are:
- Less than 36% APR interest
- Not a lump sum, two week repayment
- Provide underwriting to determine payback
We are a Coalition of people and organizations in local communities who work with real people in real situations and understand their financial needs. Many have been successfully offering loan alternatives in their communities, but don’t know how to reach the consumers who need them most. Some want to offer solutions, but need help and guidance to understand best practices. Local organizations can act as incubators for emerging alternative loan programs and provide feedback for replicating successful programs in other markets.
The coalition is taking immediate action to assemble a team of organizations and individuals nationwide who are committed to helping people in need find affordable, responsible and safe financial assistance. With the CSLA as their megaphone, the valuable insight generated in local communities can be elevated to a national forum, where other passionate people are discussing the same issues plaguing communities, and actively looking for alternative solutions.