Megan recently moved from Arizona to Wisconsin after leaving a difficult relationship. During this time of urgent need, she turned to payday loans for fast cash, but quickly faced a frustrating and unachievable payment plan. She connected with St. Vincent de Paul — Madison’s microlending program and is now on a path towards financial stability.

Your compassionate support of SVdP Madison means neighbors facing crisis don’t have to walk alone. Launched in 2024, the microlending program offers small-dollar loans to help people consolidate debt and become financially stable. Loans range from $400 to $2,500 with low interest rates and flexible repayment plans through Bank of Sun Prairie or Lake Ridge Bank.

Microloans are a safe alternative to predatory payday or auto title loans, which cause immediate and long-term financial harm. Wisconsin remains one of the few states without interest rate limits, and the average annual percentage rate on payday loans made to Wisconsin consumers during 2025 was 600%. Both payday loans and microloans are designed to help working families cover urgent expenses like car repairs, rent, or utility bills when money is tight. But while payday loans often trap borrowers in cycles of debt, microloans are designed to create long-term stability.

Through the microlending program, borrowers receive financial education and establish relationships with local banks, helping them build stable credit and a stronger financial future. Thanks to you, this program remains a big assist in helping neighbors in need out of poverty.

Your compassionate support of SVdP Madison means neighbors like Megan facing crisis don’t have to walk alone.

Unexpected Expenses Lead to Emergency

While Megan was in the process of moving, she faced several unexpected expenses, and opened a payday loan to cover immediate bills. Between moving services, packing supplies, cleaning fees, furniture replacement, and an apartment down payment, she didn’t have enough cash to pay everything. A payday loan seemed like the only option, and it was quick. She took out a loan for $900 from a local payday lender, with an interest rate of 210%.

Once established, the interest rate on the payday loan kept increasing. Megan knew she was never going to be able to pay it back as she was working on paying off student loans and a few weeks away from starting her new job. Frustrated and overwhelmed with the situation, Megan reached out to The Foundation for Black Women’s Wellness. There she connected with an intake specialist who referred her to the SVdP Madison microlending program. Megan recalls the connection being a blessing in her life.

——————————————————————————

Donate to Support Microloans

Donate Now

——————————————————————————

Providing Help Without Judgement

The process to create a microloan with SVdP Madison was seamless and easy, Megan said. With help from SVdP Madison staff, Megan established a new loan with Lake Ridge Bank and successfully closed out of her payday loan. She’s now paying back the loan at a manageable 10% interest; just $50 per month. She appreciates being with a bank to help build credit and make solid payments over time with a consistent interest rate.

Beyond the financial help, Megan felt that SVdP Madison and Lake Ridge Bank staff were personable, and provided help without judgement. She recalled feeling embarrassed at her situation and for using a payday loan, but praised staff for being kind and showing empathy in a difficult situation. She recalls SVdP Madison Services Coordinator Karla, being with her every step of the way.

“I don’t know if I could do it without her, honestly,” Megan said. “She made me feel normal.”

Thanks to the care of donors like you, Megan found financial stability and a path forward. Your support is crucial in helping other people just like Megan achieve confidence and financial stability. Donate to support microloans here.