The Credit Union offers fair and affordable loans as well as money management advice and we would urge anyone who relies on doorstep loans to talk to us instead.
It was recently announced that Provident Financial is withdrawing from doorstep lending, following compensation claims from customers who said they had been mis-sold loans. While doorstep lending is legal and regulated, it has been criticised for the high interest rates charged and the ease with which people can get into significant debt.
Credit unions offer a range of ethical products and services that provide a fair and much more affordable alternative to doorstep lenders, and we have significant experience helping people who have been severely affected by high cost lending.
Credit Union Director Helen Baron said: “If you have been caught in the high cost lending trap and you’re struggling to repay a loan, then talk to us. We won’t judge you, but we will offer the advice and support you need to help you deal with your debt.
“Often, what starts out as a small loan repaid weekly in cash on the doorstep can take years to pay off because of the exorbitant interest rates charged. People don’t always realise how much they have to pay back in total, which can lead to financial problems as well as stress and mental health issues.
“Rather than turning to loan sharks and payday lenders, we would urge people to contact the Credit Union instead. With a Credit Union loan, we will never encourage you to borrow more than you need, you only pay interest on the reducing balance of your loan and you can pay off the loan at any time.
“As a financial co-operative, owned and run by our members, the Credit Union’s aim is to encourage people to start a savings habit, helping to reduce their reliance on borrowing. However, we recognise that we all need to borrow from time to time – whether that’s for big bills, one-off emergencies or important life events – and our loans provide a more affordable and responsible solution.”
The Credit Union offers loans of up to £25,000 above savings, starting from just 2.9% APR, or smaller loans to tide you over until payday. Our unique low cost ‘Saver Loan’ sees part of your regular repayments allocated to your savings account, which means that as you repay your loan your savings grow.
The Credit Union also offers financial planning advice and, as well as a number of money management resources on our website, you can always contact us to make an appointment with one of our money advisors.