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If you’re in Alabama and considering a payday loan, think again.
Payday loans are short-term loans that trap consumers inside a debt cycle with high rates of interest and unforgiving repayment periods.
If a two-week payday loan is not paid off promptly?in Alabama, the interest rate with that loan can reach 461% annually, that is among the highest rates in the united states, according to a study through the Pew Charitable Trusts. This means you will finish up paying $461 in annual fees for a loan which was originally $100.
These predatory lenders are located through the state, that has 967 more payday loan storefronts than McDonald’s restaurants.
NerdWallet is simply getting started with its educational campaign against predatory lending and is working with the Gateway Foundation and Alabama Appleseed to supply Alabama consumers with alternatives to payday loans.
Before getting an online payday loan, contact Gateway first: Its program,?Gateway Financial Freedom, gives you confidential, individual assistance with debt management, budgeting, and mortgage and foreclosure counseling.
Credit unions can be a great alternative to pay day loans. They protect consumers by offering lower rates of interest and longer repayment periods. They’re also more flexible lenders; they use their customers to assist them to manage their money.
Note that you must be a member of most credit unions to apply for their loans. The price of membership differs from $10 to $35, a good investment that could help you save hundreds or thousands of dollars in comparison with average payday loan fees. We’ve discovered that many lending institutions offer short-term loans with interest rates (APRs) ranging between 6% and 23%, but you should contact individual lenders for the most current information on short-term loan offers.
Here are a few alternative lenders across Alabama, compiled and recommended by Alabama Appleseed:
Alexander City
Mutual Savings Credit Union
1030 Lee St.; (256) 234-3821
Birmingham Metro
eCo Bank (Bessemer)
4933 Promenade Pkwy. #113; (205) 226-3944
Railroad Bank (Irondale)
1808 2nd Ave. S; (205) 956-0678
City of Birmingham
NRS Community Development Credit Union
7400 London Ave.; (205) 833-3556
APCO (Alabama Electric company) Credit Union
750 17th St. N; (205) 226-6800
Avadian Credit Union
613 19th St. N; (205) 985-2828
Legacy Community Credit Union
1400 S. 20th St.; (205) 933-9933
Secure First Credit Union
2725 35th Ave N; (205) 520-2115
Landmark Credit Union
5705 Valley Rd.; (205) 783-9100
Coosa Pines Credit Union
524 Red Lane Rd. #B; (205) 838-2466
America’s First Credit Union
1819 20th Street Ensley; 205-781-4220
ANG Federal Credit Union
5401 E. Lake Blvd.; (205) 841-4525
Brewton
Brewton Mill Federal Credit Union
2549 South Blvd.; (251) 867-3162
Daleville
IAM Community Federal Credit Union
467 S. Daleville Ave., PO Box 366; (800) 343-9933
Decatur
Alabama Central Credit Union
3048 Finley Island Circle; (256) 351-7880
Park Community Credit Union
2328 Point Mallard Dr. SE; (256) 353-3616
Wolverine Credit Union
2505 Highway 31 South; (256) 355-5010
Dothan
Army Aviation Center Federal Credit Union
123 S Woodburn Dr.; (334) 671-1890
Five Star Credit Union
411 North Foster St.; (334) 793-7714
Wiregrass Credit Union
326 Honeysuckle Rd.; (334) 793-3667
Tyndall Federal Credit Union
3116 Ross Clark Circle; (334) 792-3306
APCO (Alabama Power Company) Credit Union
2220 Montgomery Highway; (334) 793-7226
Gadsden
Alabama Teachers Credit Union
702 Walnut St.; (256) 543-7040
WinSouth Community Credit Union
110 S. 26th St.; (256) 543-7302
Huntsville
North Alabama Educators Credit Union
2309 Whitesburg Dr. S; (256) 534-2423
Redstone Federal Credit Union
220 Wynn Dr. NW; (800) 234-1234
Rocket City Federal Credit Union
2200 Clinton Ave.; (256) 533-0541
Mobile
New Horizons Credit Union
6320 Airport Blvd.; (251) 316-3240
University of South Alabama Federal Credit Union
103 Hillcrest Rd.; (251) 706-0255
Gulf Coast Federal Credit Union
1001 Springhill Ave.; (251) 438-7464
Mobile Educators Credit Union
3150 Airport Blvd.; (251) 473-4712
Navigator Credit Union
1175-A Hillcrest Rd., Suite 7; (800) 344-3281
Mobile Government Employees Credit Union
109 St. Joseph St.; (251) 694-4100
The Infirmary Federal Credit Union
5 Infirmary Circle; (251) 435-5900
Montgomery
Alabama State Employees Credit Union
1000 Interstate Park Drive; (334) 270-9011
Montgomery VA Federal Credit Union
345 Perry Hill Rd.; (334) 272-7790
Navy Federal Credit Union
2767 Eastern Blvd.; (888) 842-6328
APCO (Alabama Power Company) Credit Union
244 Dexter Ave.; (334) 834-5144
Energen Credit Union
2914 Chestnut St.; (334) 263-7077
Guardian Credit Union
616 Madison Ave.; (334) 242-5484
Tri-Rivers Credit Union
400 Arba St.; (334) 834-7483
Fedmont Federal Credit Union
330 Eastdale Circle; (334) 270-5532
Alabama Rural Electric Federal Credit Union
340 TechnaCenter Drive; (334) 215-7328
Muscle Shoals
Listerhill Credit Union
4790 E. 2nd St.; (256) 383-9204
TVA Community Credit Union
TVA Reservation; (256) 386-3000
Valley Credit Union
200 E. 6th St.; (256) 381-3335
Opelika
Four Seasons Federal Credit Union
2915 Pepperell Pkwy.; (334) 745-4711
Selma
Riverdale Credit Union
198 Highland Ave.; (334) 872-9096
Tuscaloosa
Alabama Credit Union
220 Paul W. Bryant Drive East; (205) 348-5944
RiverFall Credit Union
2520 6th St.; (205) 759-1505
City Credit Union
2302 Jack Warner Pkwy. NE; (205) 349-4209
Tuscumbia
Valley Credit Union
200 E. 6th St.; (256) 381-4800
Tuskegee
Tuskegee Federal Credit Union
304 W. Montgomery Rd.; (334) 727-3180
If you aren’t from Alabama and want to locate a credit union in your area, try using this tool to discover the closest institution. Visit the websites of person lending institutions to learn more about their small-dollar loan options, and appearance NerdWallet for updates on alternatives in other states.
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