The cost of living crisis is leading to acute poverty in our communities. An ethical Community Investment in the Credit Union could provide a much-needed helping hand to some of the most vulnerable in society.
Being able to borrow money when we most need it can make a crucial difference to our lives, whether that’s to pay for a new cooker or fridge, to buy school uniforms for the kids or to cover the cost of a trip abroad to visit a relative in need.
With a lack of options, many people end up taking out high cost loans with interest rates of several hundred percent and more. These loans often leave people unable to afford basic necessities, creating a spiral of debt it can be hard to get out of.
A Community Investment in the Credit Union is a way of using some of your savings to benefit the community. As a co-operative formed on the basis of mutual self-help rather than charity, the Credit Union encourages saving rather than borrowing. These savings are then pooled and reinvested into the community in the form of low cost Saver Loans, that can be accessed as an alternative to high interest credit.
It costs nothing to make a Community Investment. The money you invest remains your money and can be withdrawn on demand, normally within five working days.
Credit Union Director Don Kehoe said: “Access to low cost credit is vital for many people. Interest on our Saver Loan starts at just 12.7% APR on the reducing balance of the loan and greatly reduces the cost of borrowing.
“By making a Community Investment in the Credit Union, you could help some of the most vulnerable in society stay out of the clutches of loan sharks or high cost lenders and set them on the path to building up a pot of savings for the future, providing a route out of debt.”
Financial analysis shows that for every £1 we lend to members, they save a full £1.25 over the course of a year in interest payments, bank charges and fees. That means a Community Investment of £1,000 in the Credit Union could provide a community benefit to borrowers of £1,250 after one year, £2,500 after two years and £3,750 after three years.
Find out more about making a Community Investment in the Credit Union.