Consider a credit union loan this Christmas
Christmas puts a financial struggle on every family, with most people using credit cards, loans or buy now pay later schemes just to cover the cost of the big day, but this can take several months to pay off.
The festive season will probably look quite different to many households in Wales as the cost of living crisis continues to frighten us every time we make a cup of tea, let alone turn on a tumble dryer.
A typical household in the UK spends just over £2,500 in a month. But according to the Bank of England we spend almost £740 more in December, which is a 29% increase.
This time of year can bring huge pressures for families and can result in increased levels of unmanageable debt.
So if you’re struggling and possibly looking to take out some form of credit in the run up to Christmas, then look no further than your nearest credit union.
Credit unions are responsible financial cooperatives, with no external shareholders, that offer safe and ethical savings and affordable loans for all members of the community.
You can borrow – at reasonable rates – from £100 to £15,000 and because you’re not treated as a credit score you’re more than likely to get a loan from them even if you were refused by your local bank.
Interest on loans is charged on the reducing balance and come with no hidden charges and no penalties for repaying the amount early.
With a credit union you can repay the debt back through your wages or benefits by a standing order and whilst making those repayment can start saving towards next year.
In addition to other products, credit unions offer Christmas savings schemes that only allow withdrawals in the lead up to the festive period.
You can also help to reduce the cost of Christmas yourself but setting a budget and sticking to it.
Look at how much you overspent in 2021 and prioritise what makes Christmas special by writing a list of essentials
Spread the cost of Christmas over several months and don’t leave it until your last payslip because personal costs, like rent and utility bills need paying.
Visit your nearest credit union today – you’re better off with us!