September 2020 Update | $1 Million Saved! Exodus Lending - Exodus Lending

September 2020 Update

By Kaitlyn October 9, 2020

$1,000,000 Saved!

That’s right. Exodus Lending estimates our program has saved participants more than $1 million in interest and fees that they might have otherwise paid to predatory lenders over a year’s entrapment.

“This is a major milestone for Exodus Lending. The fact that our program participants were able to, collectively, use a million dollars for groceries, rent or mortgages, medications, and other bills, instead of handing that money over to predatory lenders, is significant.” 

– Eric Howard, Board President at Exodus Lending

How do we calculate this number? Good question!

Most of our participants tell us they would have otherwise remained stuck in the debt trap without our program. Based on this, we use the following simple calculation to estimate how much they would have paid to predatory lenders in a year. We take how much each participant was paying every two weeks in interest and fees to predatory lenders, and multiply that cost by 26. 

It’s an imperfect estimation, sure. However, it helps to showcase just how depleting the debt trap is for Minnesotans. Conversely, it also shows just how invigorating our programming is for our participants.

“I did something I swore I’d never do again – I took out a payday loan. And I had no idea this would spiral as much as it did. I took out $480 and was expected to pay back around $552 – $72 in interest and fees every two weeks. This cycle lasted for months. Exodus Lending was a lifesaver for me.”  

– Missy Juliette, Board Member at Exodus Lending and program graduate

We’ve helped more than 440 Minnesotans break free from payday loan debt. More than 200 participants have graduated from our program by paying back their loans in full. But we know more Minnesotans desperately need our help, as thousands are struggling in the vicious cycle of payday loans.

“There are over 40,000 Minnesotans caught in the payday lending debt trap. Keeping a million dollars in the community is a big step, but there are still so many Minnesotans who need to find economic security. Through a spirit of compassion and determination, I’m confident we can do that on a much larger scale.”

 – Sara Nelson-Pallmeyer, Executive Director at Exodus Lending

Let’s Celebrate!

Join Exodus Lending and The Theater of Public Policy on Thursday, October 8th at 7 p.m. We are excited to gather together for an evening of improv, humor, and discussion of payday lending in Minnesota and Exodus Lending’s efforts to respond.

Predatory Lending in the News

In case you missed it, here are some of the latest news items on predatory lending:

Exodus Lending E-Newsletter: September 2020