Repaying a credit union loan with benefit payments
Credit Unions across Wales offer people small loans that can be repaid directly from their Child Benefit payments.
The loans not only allow repayments to be directly from their benefit, but parents can also pay some of the benefit into a savings account for the future. Credit Unions introduced the loan schemes to offer parents a way to access a small loan and spread the cost of family expenses without having to resort to doorstep or payday lenders.
Claire Savage, Policy Officer for Credit Unions of Wales said:
“Family life can be expensive, whether it’s school uniforms and trips, birthdays or Christmas, a credit union Child Benefit Loan allows parents to spread the cost.”
Each time a Child Benefit payment is made, a percentage is used to pay off the existing credit union loan and the remainder can be saved into an adult or children’s account or returned to the member.
Start your application for a small loan.
As social enterprises with no external shareholders, credit unions are able to offer loans at very competitive rates of interest. Interest is charged on the reducing balance of the loan, there’s no hidden charges or penalties for paying the loan early and you may receive free life insurance.