Credit UnionSome of us staff a branch of the South Warwickshire Credit Union on a Saturday morning between 11am and 12 noon in the Memorial Hall, Salford Priors.
Credit Unions are fairly new in England but across the world they have a long history. The largest Credit Union is the US Navy and people of Ireland are no strangers to them either. They are popular in schools too. Two of our local church schools have over 30 savers.
Credit Unions provide a simple way to save. The joining fee is just one pound then you can save small or large amounts whenever you like. Once you are recognised as a regular saver, you can then borrow small amounts at a very low interest rate. This is just 1% per month. So, pay your loan back after one month and you will only pay 1%. Most loans will take longer to repay of course. The real advantage is that interest is calculated on the reducing balance rather than on the total loan.
Pay back £10 of a £100 loan for example and the interest is then calculated on £90. This becomes a very cheap way of borrowing. A loan of £100 over a year would cost you under £7 if you paid back £10 per month.
This is very helpful if you suddenly need to borrow a small amount and potentially far cheaper than using a credit card. (Borrowing is not available for children)
Therefore, Credit Unions encourage a culture of saving and also provide the option of cheap borrowing for small loans. Credit Unions are registered with the Financial Services Authority so your money is safe, unlike with some lenders. Also it is so personal and local.
Give it a try. You are welcome. |
