Newport Credit Union saves members £470,000 in debt repayments


Newport Credit Union has revealed it saved more than 1,200 members around £470,000 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.

Benjamin West, General Manager for Newport 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 the Newport area.

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

On an average £500 loan repaid over a year, people borrowing with Newport Credit Union would pay a total of £602 over 12 months.

A typical lender, in this case Satsuma, offers the same loan over the same period the total amount repaid is £996, £394 more than Newport Credit Union.

Jayne Bryant MS said: “These figures show what a fantastic job the team at Newport Credit union are doing. Especially during these difficult times when many people may be facing financial hardship, joining a credit union offers a good way to access safe savings and a sensible way to lend.”

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

Benjamin West 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, there’s no hidden charges or penalties for paying it off early, and many applicants receive free life insurance for the remaining balance of the loan.”

To find out more about Newport Credit Union, go to www.newportcreditunion.co.uk

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