Gateway Credit Union saves members £1 million in debt repayments


Gateway Credit Union has revealed it saved more than 1,300 members across Torfaen and Monmouthshire around £1 million 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.

Sara Burch, General Manager for Gateway Credit Union, said: “This staggering amount of money 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 Torfaen and Monmouthshire.

“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 Gateway 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 the total amount repaid is £1992, £787 more than Gateway Credit Union.

Member of the Senedd Lynne Neagle said: “I would like to offer my heartfelt thanks and congratulations to Gateway Credit for their brilliant work in the past year. The huge amount of money they have saved for members is incredibly impressive and will have made a huge difference to the quality of life of those struggling on low incomes.

“As we all face a much more uncertain future because of this pandemic their services have never been more important. “

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, Gateway Credit Union offers affordable, ethical loans and savings.

Sara Burch added: “We’re not a second-best option for people who can’t get a loan from a bank, we’re a first-choice option that’ll often give people a better deal.

“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, there’s no hidden charges or penalties for paying it off early, and almost all applicants receive free life insurance.”

To find out more about Gateway Credit Union, go to www.gatewaycu.co.uk

 

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