The Worship Center Christian Church in Birmingham announced during services on Sunday morning that it will pay off the payday loans of 48 people struggling with debt.
Those whose loans are being paid off owe a combined total of more than $41,000 and are paying high interest rates of 36 percent and much higher. Payday loans are unsecured cash advances that people use to make it through to the next payday. Payday loan centers proliferate throughout Alabama.
“It’s kind of a ticking time bomb with high interest rates,” Senior Pastor Van Moody said in an interview after the service. “That’s why many people never get out.”
Those having their loans paid off will be required to undergo financial counseling and attend financial workshops so they don’t get in the same fix again, Moody said.