About a year and a half ago, [Nina} McCarthy took out another, different kind of loan. She went to her pastor, Rodney Hunter, at Wesley Memorial United Methodist Church in Richmond. Hunter helped her borrow $700 so she could make a dent in paying off her mounting credit card debt, then about $8,000.
Here’s how it worked: McCarthy’s church offered funds as collateral so she could qualify for a loan through the Virginia United Methodist Credit Union. McCarthy agreed to repay the loan at an annualized interest rate of about 6 percent ”“ meaning monthly payments of $25 for about 2 1/2 years, drawn right out of her bank account.
McCarthy is one month behind on the church loan, but she’s confident she’ll catch up this month. “I’m real grateful for it,” she said.
The program is called the Jubilee Assistance Fund. In 7 1/2 years, it has helped parishioners of the United Methodist Church secure 14 loans ”“ from $500 to $8,800 ”“ according to Carol Mathis, chief executive of the credit union.