Predatory Lending Vs. Women in Need

Predatory lending targets women in need

Far too often, low-income working women are faced with hard choices. Do I pay the rent or feed my family? Should I buy school supplies or pay the overdue power bill? What am I going to do?

In sheer panic, many turn to predatory lenders who will take advantage of their desperate situations. First Fruits Ministries wants to help women in need by offering alternatives to the near-criminal interest rates offered by unscrupulous payday lenders and teach women to break the cycle of crippling debt.

Predatory lending practices usually involve unfair and deceptive tactics that mislead people into taking out loans that aren’t in their best interest. They charge inflated fees and interest rates for loans borrowers might not be capable of repaying.

Two types of predatory lending are common with the poor

Predatory mortgage lending occurs when lenders offer loans using dishonest lending practices such as prepayment penalties and negative amortization, which significantly reduces a family’s home equity and could potentially lead to foreclosure. It has been estimated that predatory mortgage lending results in a loss of $1.9 billion for American families each year.

Payday lending is defined as the practice of offering short-term, high-interest loans on the condition the lender obtains authorization to get payment from the borrower. The majority of “payday” borrowers end up with greater debt and are unable free themselves from the high-interest payments. In turn, this has a serious impact on their ability to apply for conventional loans in the future.

To learn more about women in need and predatory lending, check out this article by Jody Harris with the Maine Center for Economic Policy.

How you can help First Fruits Ministries assist and educate women in need 

First Fruits Ministries is a 501c non-profit dedicated to the betterment of women recovering from addiction, abuse and difficult family situations. We are based in the Birmingham, Alabama area and participate in many local market events, often employing the women we serve. We sell baked goods, hand-poured scented candles and select other crafts.

We also have two online stores. Visit our Shopify home page to shop hand-poured scented soy candles and seasonal gift baskets. For an altogether different shopping experience, visit Best Bargain Deals Now, our eBay store. We have vintage and current magazines, collectibles, DVDs and so much more!