>YES LIVE: Payday Loans & Young Adults – Opportunities for Credit Unions

This entry was posted by Tuesday, 4 December, 2007
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Speaking was Lois Kitsch, National Program Manager of Real Solutions at the National Credit Union Foundation (NCUF). More info: www.ncuf.coop

(Full disclosure: In my previous job at NCUF, I worked with Lois and she is an amazing person – one of the most passionate and dedicated professionals in the credit union movement today.)

Lois discussed products and services that are used by unbanked consumers including millions by young adults. Attendees also heard how predatory lending products (such as payday loans) are used by Gen Y borrowers and how credit unions can offer products that not only beat the competition but help these young members move onto a more financially secure future.

Did you know?

Credit unions should think about the following when deciding to offer payday loans:

  • Target market
  • Product mix: Delivery system
  • Educator/mentor
  • Finding Gen Y Employees
  • Resources

Before the summit, I asked Lois about the importance of credit unions serving young adults and she emphasized the following:

Remember that not all of Gen Y are college students. In this country today, only about 70% of high school seniors actually graduate from high school (7,000 students per day drop out). This dramatically decreases their earning power over the life times. Credit unions must be ready to offer low-cost financial products for this very diverse market niche.

One of my favorite leaders in this area that Lois mentioned is Prospera CU’s GoodMoney Program – GoodMoney is an innovative collaboration with Goodwill Industries of North Central Wisconsin and Financial Information Service Center which placed credit union services in a Goodwill retail store. Here is a short video on GoodMoney:

3 Responses to “>YES LIVE: Payday Loans & Young Adults – Opportunities for Credit Unions”

  1. No Fax Payday Loans - David

    >No fax payday loans are very beneficial in times of financial shortage. A lot people viewed payday loan industries as the biggest predatory lender. We all have our brains, so why not use it, stop jumping into conclusions and start analyzing the good things that payday loans have brought us, and who the real predatory lenders are.

  2. dehoang

    >When push comes to shove, payday loans do help and are easy to do. It’s only when you don’t pay them back on time when the interests start accumulating.

  3. raya

    >Payday loans bring me peace of mind as I am assured that if something unforeseen occurs, which these days and age often occurs, I can get the money I need in minutes. thus i need not stress out about how to make ends meet.

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