Advantages of credit union?

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  • System
    System Posts: 178,094 Community Admin
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    Doesn't the same happen with a credit union loan/credit card? - vanquis make money because they are providing a service

    I think also the individual must take some responsibility if they know they can't afford something, people will wise up quickly if nobody has their back
  • System
    System Posts: 178,094 Community Admin
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    MatthewAinsworth wrote: »
    Doesn't the same happen with a credit union loan/credit card? - vanquis make money because they are providing a service

    I think also the individual must take some responsibility if they know they can't afford something, people will wise up quickly if nobody has their back

    There are lots of reasons people have a poor credit history.
    Just as there are many reasons people are homeless.

    Your view is rather simplistic.
  • System
    System Posts: 178,094 Community Admin
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    Doesn't it boil down to not paying bills on time? So it's either forgetfulness (direct debit), lack of will, or not keeping employment - and basic work is easy to find if you're willing to work in an agency in a town, and benefits cover the bases where people can't work - if some people can survive on that income why can't everybody?
  • jayII
    jayII Posts: 40,693 Forumite
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    MatthewAinsworth wrote: »
    Doesn't it boil down to not paying bills on time? So it's either forgetfulness (direct debit), lack of will, or not keeping employment - and basic work is easy to find if you're willing to work in an agency in a town, and benefits cover the bases where people can't work - if some people can survive on that income why can't everybody?

    Or illness (yours, partner's, parents', children's, etc) or disability, or living in an employment blackspot, or negative equity, or simply having no understanding of money, or....

    I could go on because there are so many reasons why people get into unmanageable debt and many of them really aren't their fault. I've been lucky enough to never be in that situation, but I understand that life has the potential to be extremely difficult, often through no fault of the people involved.

    You seem to understand real life problems and struggles as well as you understand concepts like philanthropy. Hopefully wisdom will come with time.
    [FONT=&quot][FONT=&quot] Fighting the biggest battle of my life. :( Started 30th January 2018.
    [/FONT]    [/FONT]
  • System
    System Posts: 178,094 Community Admin
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    Those are insurable problems - so again responsibility falls on the worker?
    Not understanding money not an acceptable way for people to remain
  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    MatthewAinsworth wrote: »
    Those are insurable problems - so again responsibility falls on the worker?
    Not understanding money not an acceptable way for people to remain

    Given your posting history this statement is surely ironic.
  • DigForVictory
    DigForVictory Posts: 11,906 Forumite
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    Having a disabled child is not something you can insure for. Not by the time you need it, anyway.
    Says she, counting her blessings.
  • System
    System Posts: 178,094 Community Admin
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    Dig - there are benefits for that?
  • DigForVictory
    DigForVictory Posts: 11,906 Forumite
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    No.


    eta 10 characters
  • Anthorn
    Anthorn Posts: 4,362 Forumite
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    MatthewAinsworth wrote: »
    Doesn't it boil down to not paying bills on time? So it's either forgetfulness (direct debit), lack of will, or not keeping employment - and basic work is easy to find if you're willing to work in an agency in a town, and benefits cover the bases where people can't work - if some people can survive on that income why can't everybody?

    You appear to be rather starry-eyed about sub-prime lenders and in addition you display a lack of knowledge about Credit Unions and their function.

    Sub-prime lenders are in the biz to make money, to make a profit and the sub-prime biz is safer than it at first appears: For example, how many people who have obtained a sub-prime card to repair their credit will default?

    I suppose the main advantage of Credit Unions is they help to avoid doorstep lenders and payday loans. Consider the probable APR for a new member at a Credit Union of 40% - 50% and compare it for example with Provident where the representative APR proudly displayed on the bottom of their website is 535%.
    https://www.providentpersonalcredit.com

    The reasons why different people need financial help are many and varied. Personally, if I was in need of help I would prefer a Credit Union loan to a doorstep lender, payday loan or loan shark!
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