Brecon Credit Union saves members £800 per year in debt repayments


Brecon Credit Union has revealed its members save around £800 per year in debt repayments over the past year, compared to using a payday lender.

As Christmas rapidly approaches, credit unions across Wales are helping even more people bridge the financial gap caused by the Covid-19 lockdown.

During this prolonged period of financial insecurity the ethical savings and loans providers, who offer small loans at affordable rates, have a clear message for the Welsh public – “You’re better off with us”!

The news comes after the Financial Ombudsman revealed it had upheld 70% of complaints against payday loan companies over the past year.

Michelle Turrall, Business Development Manager for Brecon Credit Union, said: “This figure shows how, at this crucial time for the nation’s finances, credit unions help people to avoid financial hardship, worry and debt which affects communities in the Breconshire area.

“It’s never been truer to say that you really are better off with us.”

On an average £1000 loan repaid over a year, people borrowing with Brecon Credit Union would pay a total of £1205 over 12 months.

A typical lender, in this case Satsuma, offers the same loan over the same period but the total amount repaid is £1992, £787 more than Brecon Credit Union.

Kirsty Williams MS for Brecon and Radnor said: “I have been a proud member of Brecon Credit Union for many years and continue to appreciate and support their important work.”

During the past year a sample of 13 credit unions found that people in Wales saved between £13.5 million and £15.9 million by choosing a credit union over a payday lender.

If you borrowed £1,000 over 12 months then the difference between a credit union and a payday lender would be:

 

Credit Union

Satsuma

Provident

Amount of Interest

£205.52

£992.00

£872.00

Monthly Repayment

£100.46

£166.00

£156.00

Total Repayable

£1205.52

£1992.00

£1872.00

*Figures correct as of 18 June 2020

As a financial co-operative, Brecon Credit Union offers affordable, ethical loans and savings.

Michelle Turrall added: “Our members are not treated as a credit score and despite being turned away for a loan from other high street institutions, may still be able to borrow from us.

“Interest from a credit union loan is charged on the reducing balance of the loan and there’s no hidden charges or penalties for paying it off early.”

To find out more about Brecon Credit Union, go to www.breconcreditunion.co.uk

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