Consider a credit union for your finance needs
Most people are only too aware of how difficult and expensive it has become to get any sort of finance these days, with the global credit crunch maintaining its grip on the UK money markets and lenders exercising increased caution with regards to who they will lend to. Even finding an affordable personal unsecured loan has become extremely difficult if not impossible these days, and this has marred the chances of many consumers who are looking to raise finance.
The current financial climate has resulted in an increasing number of consumers turning to even more expensive forms of credit, such as doorstep lenders and payday loans, in order to get finance, which is costing them a small fortune. However, some industry officials have pointed out that there could be a far more affordable and suitable solution for many borrowers in the form of local credit unions, who may be able to offer modest loans at very reasonable rates of interest.
One industry official said: “Credit unions offer a great alternative to money shops and payday loans for people needing small loans over relatively short periods. Credit unions charge no more than two per cent on the reducing balance of a loan and many charge just one per cent, which would mean that £1,000 taken out for a month and paid back weekly would accrue just £5.76 in interest at one per cent.”
She added: “I would recommend that anyone needing a small loan first looks to their own bank or building society or credit union for a loan, rather than using doorstep lenders or money shops, if they want a good deal. Credit unions are not as well known in Great Britain as they should be but they are basically financial co-operatives which aim to get the best deal for their members. In the US and Ireland, for example, credit unions are very much mainstream financial institutions with millions of members.”
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