NCUF Posts Payday Loan Alternatives Toolkit on REAL Solutions Impact Center

Don’t Fool Yourself! Credit Union Members Use Payday Loans

Click to download NCUF's payday loan alternatives toolkit!Do credit union members use payday lenders? If you think not, odds are you’re fooling yourself.

In credit unions that research all of their members’ other credit obligations, they find that 10%-20% of members do at least some business with payday lenders.

Why? Some members admit in focus groups that they’re afraid their credit union will turn them down because they have credit issues. Others believe their credit union’s hours and/or location aren’t convenient when they need quick cash. But most say their credit union simply doesn’t offer small, short-term unsecured loans that can be accessed quickly and conveniently.

Where to Find Alternatives

Click to download Payday Lending: A REAL Solutions Implementation Guide.
Now thanks to the National Credit Union Foundation (NCUF), credit unions have free access to a toolkit of payday loan alternatives:


Payday Lending: A REAL Solutions Implementation Guide


This 121-page toolkit will help credit unions build sustainable payday loans as low-cost options for consumers.


The online toolkit is designed to be comprehensive, yet easy to use.


It’s available for free download on the REAL Solutions Impact Center at www.realsolutions.coop.

Meet the Author

Click for Nancy Pierce's bio....The toolkit was developed by Nancy Pierce, Ph.D., president of Tipton Research Group in Kansas City, Missouri, and a field coach for NCUF’s signature program, REAL Solutions.

As one of five REAL Solutions field coaches, Pierce has worked with eight state credit union leagues to help over 100 credit unions develop products and services that help working families build financial security. One of Pierce’s areas of expertise is payday loan alternatives.

10 Successful Models

“Our Payday Lending Implementation Guide is intended to develop solutions that are appropriate for each individual credit union and its membership,” Pierce explains. “It’s not a one-size-fits-all toolkit; several turn-key products are featured as examples. Ten credit union models were selected to offer a broad array of loan features, pricing structures, and underwriting criteria.”

Successful models are presented with sample procedures and marketing materials, collection techniques, and time-tested loan results.

You Set Your Pricing

The toolkit also includes interactive Excel worksheets to help each credit union make its own pricing decisions on open-end loans as well as closed-end loans.

Credit Unions Are Part of the Solution

Lois Kitsch“Credit unions can be part of the solution to high-cost payday lenders,” affirms REAL Solutions National Program Director Lois Kitsch. “Payday loan alternatives enable credit unions to reach out to members who are struggling financially and help them break the cycle of debt. Our toolkit’s small, short-term loans provide good value for members while being sustainable for credit unions.”
Click to find REAL Solutions!