Wednesday, December 07, 2011

For A Rainy Day...

What a fabulous innovation. It would be wonderful to see this here in Australia:

When Drewery called the organization, she heard something different from the usual payday lending pitch. Wiles explained that Grace Period was a savings cooperative, one you join as you would a gym. Clients enroll as a member in the club for at least one year. Grace Period offers the new member an initial loan and establishes a workable repayment plan. Typically about $50 is deducted automatically each pay period from the member's paycheck to cover loan installments and modest club dues. These automatic payments continue for 12 months. During that time, the initial loan is repaid and additional funds accumulate as an emergency savings reserve for the member. At year's end, members can withdraw funds and close their accounts or remain members, earning interest on their savings.
-- Nora

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