Use a credit union instead of payday loan

RESIDENTS are being encouraged to seek help from their local credit union rather than go to payday loan companies when times get tough.

The Clivey Credit Union holds collections at Pinetrees Community Centre on Wednesdays from 11am to 12pm, helping people to save money and offering loans against their savings at one per cent per month.

This is compared to loan shops offering families the chance to ‘pawn’ their car at an annual rate of 356.3 per cent – non repayment of such a loan means some could lose their only asset.

Credit unions are financial co-operatives, owned and managed by the members who use them.

They offer an easy way to save, access to low cost loans and a range of other benefits.

Membership of a credit union is based on a ‘common bond’, usually linked to where a person lives or works.

Members of a credit union save in a common fund which is used to make low interest loans to the credit union members.

All interest on loans repayments is reinvested in the credit union and nothing leaves the community.

To find out more about the Clivey Credit Union, email thecliveycultd@aim.com.

Comments (1)

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12:54pm Tue 31 Dec 13

RichardR1 says...

How secure are credit unions and who underwrites them. Obviously anyone who needs a pay day type loan probably has no money to open a Credit Union account, so how does this system actually help them.
How secure are credit unions and who underwrites them. Obviously anyone who needs a pay day type loan probably has no money to open a Credit Union account, so how does this system actually help them. RichardR1

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