Savings Clubs / Credit Unions?

dj9928

Are they a good thing? I.E they give you 3 times what you have in. For a person like me who can't get a loan anywhere I think it may be an option, whats you thoughts on these organisations?

GirlRacer_2

Can'y comment on Credit Unions as I've had no dealings with them. Was stung by the Farepak crisis last October and will definitely NEVER EVER pay into a Savings Club again. This year I opened a Post Office Savings Account and save money every month for Christmas. Got the account that you have to give 30 days notice for. Hoping I won't be tempted to withdraw the money.

dj9928

May be a Credit Unions different than a saving club, in Ireland we have credit unions, if you put in say £10 they WILL loan you £30, no credit checks hassle etc, I don't have an account myself but if there where no catches I might open one

mountainofdebt

I was at a conference last year, organised by the Welsh Assembly, and they are really trying to encourage the growth of Credit Unions in areas where people are more likely to find it difficult to get loans with normal high street lenders.

(Apparently in Ireland credit unions are a REALLY big thing)

I looked into it myself as I knew nothing about them and they seem like a really good idea.

The one I looked at had a rule (and I don't know if this is applicable to all CUs) is that you have to save for a certain length of time before they will consider you for a loan, and even then they will only lend a certain multiple of your savings. Once that loan is paid off, you can apply for another loan and once again the maximum loan you can take out is a multiple of the savings although it is a higher multiple than the first one.

I was told that even whilst a person has a loan, the CU like you to continue saving, even if its a £1 a month as the CU is about encouraging saving as well as giving cheaper loans.

One speaker (from up North) was even talking about a CU that he knew of 'sold' white goods.

Definitely sounds like a good idea to me.

dj9928

Yeah I might pop in tomorrow and find out more, They are really big over here, infact everyone seems to go to there credit union for a loan rather than banks etc

beanielou

I think that CU's are just fab.
POp in tomoprrow & get them to give you the info.

gtone28

Brilliant idea credit unions I have £4000 in mine and have a £6000 pound loan at the moment. I normally wait till the two amounts level out then I clear the debt and start again.

They have helped me buy car's and go on holidays over the last 5 years

interest is a little high 1% a month, you can get cheaper from high street banks but not everyone can get a loan from banks especially if your on a low income or have ccj's and so on.

I like the idea that you have to prove that you can save before they give you a loan and you get free life insurance off most unions

Bambi234

Over the past few years we have had a credit union that is workplace based. (Transave Credit Union) And they have an agreement with my employer which is a national company that it can some str8 out of the wages which is good for me as i dont see it as my money if its taken out b4 the final amount is payed into my bank. Elent way for me to save. Mind you the rate that it pays on savings wont exactly have Martin :money:posting it on the main site as a must have. I think when i last looked it was 2.1%. Bus as the name suggests it's a CREDIT union and they have help me out a few times in the past.

ravenlooney

Id just like to say that I think credit unions are fantastic! I've been a member of our local one for years, and its got me out of more than a few financial scrapes! Yes, the interest is a bit higher than the bank (1% per month) but it keeps banks out of the equation! the way it works is that credit unions NEED people to borrow to keep things working. You borrow and pay interest, meaning that when someone else needs a loan there are enough funds available to make that loan. Its all about communities working together to help one another. And its the members who own the credit union. Its not just savings you have, its actually shares in the credit union. And your savings always grow even when you are repaying back a loan. If you have a loan and pay for example £25 per month, £20 of that will go towards your loan and £5 towards your savings. Theres also life insurance included, if I die my loan is wiped out and my hubby gets 10 times the shares I hold (so at least I know my funeral is paid for!!!)
I would recommend for everyone to join if there is one available to them. If there's none locally, why not do your community a favour and form a group to set one up. It might be hard work to set up but well worth it.