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JFLA makes loans, in part, thanks to the generosity of Cedars Sinai and LA County Supervisor Sheila Kuehl for District 3.

Short-Term Payday Loans Can Hurt More Than They Help

Father and daughter listening to music in apartment rented through rental assistance loan

The COVID-19 pandemic created a financial crisis of monumental proportions. Many people were unable to pay their rent, purchase groceries and fill much-needed prescriptions. They needed emergency cash now. To meet this need, lots of folks turned to short term payday loans. These payday loans can take advantage of unsuspecting and desperate people, many of whom have nowhere else to go. This type of lending involves repayment terms that make paying back the loan almost impossible, including sky-high interest rates and other fees.

Interest Free Loans Available to Help Renters

JFLA can help people who need emergency cash now with an interest free loan. Our loans have 0% interest, no fees of any kind, and manageable monthly payments.

Recently, JFLA helped Galima when she was unable to pay her rent. Galima, a civil engineering student, had taken out a short-term payday loan to assist with rent and living expenses. However, Galima did not take the repayment terms into account. This short-term payday loan came with a very steep interest rate. She fell behind on her payments and was not able to pay off her short-term payday loan. In addition, she was embarrassed at not being able to pay her rent. She said, “I feel so bad. I know I should not have done it.”

After many sleepless nights, and feeling lost and hopeless, Galima remembered she had taken out a loan with JFLA several years ago. She immediately reached out to us and within 2 weeks was able to obtain an interest free emergency loan. The loan she received from JFLA allowed Galima and her mother to stay in their apartment and relieved her feelings of shame and embarrassment.

JFLA is a nonprofit organization that serves all residents of Los Angeles, Ventura, and Santa Barbara counties regardless of race, religion, or gender. We offer interest free emergency loans up to $10,000 to help with rent and other living expenses. To learn more about our interest free loans, please go to jfla.org.