The $9 Difference
During Faith and Finances class our students are challenged to write down and address their indebtedness. For many of our students, ignoring debt has become a coping mechanism. Addressing debt (that in their mind cannot be overcome) can take our students into dark places of hopelessness—and hold them there. We often find our students accustomed to living in the tension of the unknown rather than addressing the difficult truth. This self-preservation behavior keeps the “Jenga tower” from falling and disrupting every other area of their life—at least for a time.
Because Faith and Finances (and Jobs for Life) values truth-telling in a supportive Christ-centered environment, we encourage our students to face facts even when it is challenging to do so.
This year we walked alongside one such student as she addressed her payday loan. Payday loans can trap individuals into long-term payments due to extremely high interest rates (as much as 400%) and can keep them there long past when the loan would have actually been paid back. Though it was difficult to admit, this student wrote down her debt and shared it with her Ally (mentor).
When this student decided to tackle her debt, we connected her with an opportunity to participate in a low-interest loan program through collaboration with St. Vincent De Paul and Redstone Federal Credit Union. If accepted into the program, the individual’s payday loan is paid off by the bank – and then the borrower pays that loan off at Redstone at only 1% interest.
Once this student decided to engage her debt and apply for this incredible opportunity, she found that she was not in “good standing” with RFCU due to outstanding charges from years ago. In order to participate in St. Vincent De Paul’s program, she first had to pay all that was owed to Redstone.
Weeks later, I accompanied this brave young woman to the bank to settle her past due account. With funds she had saved and matching funds she was awarded, she paid her account in full and received $9 in change.
The shift in her countenance was immediate. I could see in her face and in her posture the freedom that was now hers.
To be honest, I thought to myself that she needed to take that $9 and celebrate with a trip to Chick-Fil-A!
Instead, she put the change into a new savings account!
Freedom is contagious like that.
How does one measure hope for a different kind of life?
The evidence was right there…
$9 in a savings account.