High cost loans?
Although sometimes described as “high cost” loans, this is misleading when applied to the actual cost of a SACC loan. SACC loans for example are only taken out for a matter of weeks, therefore applying an annual interest rate formula is not an accurate indicator of the real cost. The total cost of credit is what is important, not the interest rate. However, it usually is best to consider SACC loans as a source of emergency funds and not used continuously.
All NCPA Members must clearly explain the total cost of credit, including all charges and fees, in clear dollar amounts so customers always know the complete cost before proceeding with any SACC (or MACC) loan.
If you find yourself using SACC loans on a regualr basis, you might want to consider independed financial counselling advice to see if you can better manage your money.
Click here to find information about financial counsellors and other helpful links.