The main objective is to explore the short term consumer credit high interest rate problem and the infectiveness of current interventions such as regulation while developing an alternative model. Therefore, the paper develops a theoretical alternative model which addresses the major interest rate cost drivers subject to stakeholder engagement through suitability, acceptability and feasibility assessment. This is because previous studies have arguably unsuccessfully attempted to solve the matter through policy regulation albeit without satisfactory stakeholder engagement hence the shortcomings.  The rationale of the new theoretical Interest Rate Model suggest that the alternative model informed by key stakeholder engagement would be more appropriate to address the adverse effects of high cost short term consumer credit than regulation.

 Key words: Short-term Consumer Credit, High Interest Rates, Policy Regulatory ineffectiveness