Can WeTrust Disrupt Payday Loans? Part 6. No More Need for Payday Loans
This is Part 6 of a series of articles describing an experimental Trusted Lending Circle in East San Jose utilizing concepts from the WeTrust Platform.
For the introduction in Part 1, click here.
For Part 2, click here.
For Part 3, click here.
For Part 4, click here.
For Part 5, click here.
By this Monday, the members of the Trusted Lending Circle knew the drill by heart: everyone contributes to the pot, and the person most in need would receive the funds. I asked everyone what they thought of the Trusted Lending Circle, and they all believed that it was beneficial. The members of the Trusted Lending Circle who had not yet received funds were still quite happy to be participating, mentioning that it felt good to help others in their community.
I explained to the members of the Trusted Lending Circle that the WeTrust Crowdsale would be occuring this week, and discussed WeTrust’s mission to promote financial inclusion in more detail. Their response was uniformly positive: they felt that Trusted Lending Circles should be promoted very widely.
This week, Sophia, a single mother working two jobs, mentioned that she could really use the funds from the Lending Circle. One of her daughters had won a science fair at school, and was going to present her project to the executives of some local tech companies (this is Silicon Valley, after all). She was rightfully proud of her daughter, and wanted to buy her some nice clothes to wear on her big day presenting her innovative project. Without hesitation, everyone agreed that Sophia should receive the pot, while asking her to take lots of pictures of her daughter’s big day.
Afterwards, Sophia mentioned to me that in the past, she had sometimes used payday loan establishments in situations like this. She would then work double overtime shifts to pay back those payday loans. Sophia knew that getting a payday loan was not a financialy sound decision, but she also didn’t want to deny her daughters any opportunities in life. She was happy to be part of a Trusted Lending Circle that allowed her to provide everything for her daughter, while not charging her usurious interest rates.
I was very moved by her words, and told her how lucky her daughters were to have a mom like her.
To learn more about how blockchain can enable lending groups like the Trusted Lending Circle described here, follow the WeTrust blog and check out https://www.wetrust.io!