BetterFi Field Report October '23 -- How Bad Is a Flex Loan?
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4 Mini-Grants Back to the Community
BetterFi continues to grow our impact -- and the winners of our first fundraiser and potluck cook-off chose 4 local organizations to each receive a $500 mini grant! Read more below.
BetterFi representatives and potluck cook-off winners! Photo by Lisa Hobbs of the Grundy County Herald
HOW BAD IS A FLEX LOAN?
In our (relatively) new partnership with Together for Hope Appalachia, we recently had cause to reflect on some of the coaching we have done over the last couple of years -- including our one-on-one coaching, coaching with an ESL program in Manchester, and recurring programs in the Grundy County Jail to name a few.
Regardless of the specific topic, we of course frequently find ourselves trying to warn against the predatory loan trap. We then often find ourselves wondering -- what is the most effective way to illustrate the trap of a predatory loan?
A typical "flex" loan in Tennessee carries an effective annual interest-and-fee rate of 279%.
With a maximum principal of $4,000, that means a borrower can pay $930 over the course of a month and never touch the principal -- even more if the predatory lender pairs the flex loan with a title loan (now we're talking about as much as $6,500 in credit).
These numbers are helpful, but we often have clients who are not even covering the monthly interest and fees. We've put together a tool to show the problem -- an online page that shows how quickly one will pay off a loan given the loan amount, repayment amount, and repayment frequency. You can click the button below to check it out or visit ezkwikcash.com -- let us know what you think! If you have an idea for a calculator that would be helpful, reach out!
👉 Predatory Loan Payoff Calculator
Mark your calendars! On the evening of December 8th we will be celebrating 5 years of BetterFi at the Sewanee Inn!
POTLUCK SUCCESS!
Thank you to everyone who made BetterFi's first fundraiser a great success!
What is Maggie doing in this photo? Addressing thank-yous, donation receipts, and t-shirts -- they are going in the mail this week. If you forgot to mark that you wanted a shirt or if you are interested in an extra, let us know!
The winning dishes were John and Kathy's empanadas, Elise's mashed potatoes, Jess' pork and apple pie, and Jeremy's horchata! The 4 winners elected to send $500 mini grants to the South Cumberland Community Fund, Marion Animal Resource Connection, Southeast Tennessee Young Farmers Coalition, and Easy's Dog Shelter. These are going out tomorrow!
Thank you also to all of the potluck sponsors and attendees -- your participation and support were instrumental in the event's success, and all proceeds are going toward growing our program to end predatory lending. Sponsors are listed by name at the end of this email!
We plan for this to be the first of many potluck fundraisers, so start thinking about what you'll enter next year.
& INTRODUCING MAGGIE!
Maggie is no longer very new with BetterFi, but we are glad to finally introduce her! Maggie is our new Director of Operations.
You may have met her at one of our booths around town or recognize her from her previous work as the Hunger Relief VISTA with the South Cumberland Plateau AmeriCorps VISTA Program. This week she is at THDA's HUD Housing Counseling Bootcamp as we evaluate whether BetterFi can serve as a local provider of the housing counseling programming required to access various mortgage programs through THDA or USDA Rural Development.
As always, thank you for your support and partnership -- we have a lot of work to do!
