A positive action you can all take

Legacy_user

Hi everyone.

I did something good this weekend. I joined a credit union. You don't often see them mentioned on here. No idea why really.

It is a great idea, its a lending and saving co operative. By the people, for the people so to speak.

It's basic function is to provide credit to those deemed "unwanted" for whatever reason by normal high street lending.

Ok so the loan rates are not the best, but it allows you to get reasonable credit facilities (albeit small), should you need them. Also, all the interest goes back into the co operative. At the end of the year, the profit is shared amongst the members (don't get too excited, current dividend is expected to be around 2%) That in mind, that is quite competative compared to most banks atm)

It means that you are helping the community and avoid paying the W^H^H Bankers more money that they really don't deserve.

All your deposits are secured as they are at a bank, and underwritten by the government, as per normal banks.

I really advise it, and it helps people and hopefully helps them avoid doorstep lenders and "Bright House" and their ilk. Not to mention the unregulated ones.

They cost a small fee to join (less than £5) and after you have saved for 3 months, you can if you wish, apply for a loan. A great thing is there is no penalty for paying back a loan earlier. In fact, it saves you money as there is no penalty at all.

For example, if you put £5 away a week, you could have a nice little savings account, and if you have an emergency, you can borrow money too.

You can find more information here: http://www.abcul.org/page/about/intro.cfm

Not_so_wise_one

13000 wrote: »

Hi everyone.


It's basic function is to provide credit to those deemed "unwanted" for whatever reason by normal high street lending.

Ok so the loan rates are not the best, but it allows you to get reasonable credit facilities (albeit small), should you need them. Also, all the interest goes back into the co operative. At the end of the year, the profit is shared amongst the members (don't get too excited, current dividend is expected to be around 2%) That in mind, that is quite competative compared to most banks atm)

They cost a small fee to join (less than £5) and after you have saved for 3 months, you can if you wish, apply for a loan. A great thing is there is no penalty for paying back a loan earlier. In fact, it saves you money as there is no penalty at all.

For example, if you put £5 away a week, you could have a nice little savings account, and if you have an emergency, you can borrow money too.

You can find more information here: http://www.abcul.org/page/about/intro.cfm

Nice post and idea, but I'm 99% certain that any one in an IVA is not allowed to apply for or have further credit (even an overdraft) while in an IVA. So it's not really much use legally to most people reading this particular section. Maybe you should post it in another part.

Jam_Buttie

I read somewhere that if you are on an IVA or similar, then legally anything under £500 is ok to borrow.

I may be wrong tho!!