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• A Credit Union can help in the Credit Crunch

A Credit Union can help in the Credit Crunch

Written by: John Dearnley | Posted: 10th November 2009

In difficult times many people find it hard to get affordable creditor a loan at a reasonable rate of interest and are forced to borrow from 'doorstep' lenders who charge very high rates of interest, anything up to 433%.

These 'doorstep lenders always increase their business in periods of rising unemployment as the normal sources of credit start to dry up. However, once a person has started using one of these companies for a loan they find it very difficult to stop, the payments seem to go on and on and there is always the offer of another loan as the amount outstanding declines.

We have also seen the appearance of the 'Payday Loan' shops and here again the rates of interest on this type of loan are extremely high. These are used by, mainly, working younger people who have no credit record and can afford to pay the loan back when they get paid but they do not calculate the cost.

In the Chester area the West Cheshire Credit Union (a merger of Chester and Ellesmere port CU) offers members savings and personal loan schemes, which are amongst the most competitive in regard to interest rates. Several members have used a loan from the Credit Union to pay off a loan from a doorstep lender and then find that their repayments to the Credit Union are MUCH lower, and therefore more affordable.

West Cheshire Credit Union, a not-for-profit local cooprative, is growing steadily, with over 1800 members and the business is run by a mixture of 5 paid staff and over 45 volunteers. It is supervised, like the big banks, by the FSA (Financial Services Authority) adn savings og up to £50,000 are fully protected by the Financial Services Compensation Scheme.

New services include a 'Christmas Savings Account' and saving by using the 'Paypoint' machine stationed at many local shops and Post Offices.

West Cheshire Credit Union is supported by Chester and District Housing Trust and the Cheshire West and Chester authority as well as other local sponsors adn is recognized as meeting a clear need for affordable personal loans and easy savings schemes.

Why not apply to join today by calling 01244 399006 or go to the website at www.wccu.co.uk

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