"Burn the Interest" Credit Card Repayment Gemach:

In its efforts to assist shluchim with personal financial matters by relieving cash flow problems and to provide more financial security, the Shluchim Gemach is now launching its sixth project: "Burn the Interest" Credit Card Repayment Gemach.

During the first few difficult years establishing their Chabad centers in new areas, many shluchim have little income and have yet to establish viable community connections.  These shluchim can amass large amounts of credit card debt just attempting to pay their bills, and as years go on, it snowballs quickly into an  impossible debt burden.  As an example, a $14,000 balance at 15% APR (which is fairly generous for some credit cards), amounts to over $150 per month—in interest alone.

"Burn the Interest" Gemach is designed to help shluchim pay down that debt now, letting them repay the Gemach for the principle instead of throwing money away on interest payments that never seem to reduce the balance due.

The "Burn the Interest" Gemach will initially offer up to $3,000.  The Gemach will offer up to an additional $7,000 if the shliach raises funds from his community (either by gift or by loan) for the exclusive purpose of paying off his credit card debt; the Shluchim Gemach will match this amount dollar for dollar.  Repayment terms are equal monthly installments over a fixed period of time, and the Shluchim Gemach will attempt to have these payments match the minimum monthly payment of the credit cards that are being paid.

How it works:

• The shliach will fill out the application form (link below), detailing the balance of each of his credit cards and the length of time these balances have been outstanding.
• The shliach will provide the amount, if any, that he can raise from his community.
• We will contact the shliach for more information.
• If the application is approved and the required documentation is provided, the shliach will send post dated checks for repayment, together with the matching amount from his community (if any).  The community’s check should be made out directly to the credit card company or companies.
• The Shluchim Gemach will send the check (together with the community’s, if any) directly to the credit card company or companies.

Note:   If you are a shliach for whom even minimum payments have become impossible, we now have a professional contact that may be able to arrange a settlement with the credit card companies for less than 50% of the balance due, and/or an interest rate reduction on the remaining balance.  Please contact us directly for more details.