General Enquiries: 020 7561 1786 or Email: info@credit-union.coop      |       CU Loan Repayment Issues Only: 020 3763 8397  or Email: loansupport@credit-union.coop

Managing the Cost of Christmas

by | Nov 21, 2023 | news |

Managing the Cost of Christmas

Christmas can be the most expensive time of year and it can sometimes be hard to find the money to pay for everything. As well as spending money on additional food, presents for family and celebrating with friends, increased energy costs due to cold weather, the cost-of-living crisis and visiting family can also add up quickly, creating an additional level of stress.

We know from the people we talk to that this Christmas is likely to be harder than most, and for many of us money will be tight. But we would urge people not to turn to high-cost lenders, payday loans or expensive credit card debt. The Credit Union offers a range of fair and affordable loans which not only charge lower rates of interest, with no hidden extras, but can help you build up a savings pot for the future.

 

Low-Cost loans.

If you need to borrow some money to cover the cost of presents for the kids or food for the family, one of our low-cost loans could be the answer. Whether you need a few hundred pounds or access to larger amounts, by joining the Credit Union you can benefit from one of a range of loans to meet your needs.

With our Saver Loan, for example, you can borrow the amount you need now, while at the same time putting a little bit each month into savings, helping to build up a nest egg for next Christmas and beyond. You can apply for a Saver Loan at any time and, once your loan has been approved and you have joined the Credit Union, all it needs is an opening savings deposit of £50.

 

Christmas Savings.

While it may be a little late to start saving for this Christmas, if you open one of our Christmas savings accounts you can start saving straight away, which could make all the difference next year. Just putting a little bit away each week can make a huge difference and will help you to build up a nest egg to cover the cost of future Christmases.

You can save as little or as much as you like with the Credit Union and there is no minimum level of savings (unless you’re using our Saver Loan). We want to make it as easy as possible for people to save and our members can save by standing order directly from their bank. Employees of organisations that participate in our payroll deduction scheme can even have savings (or loan repayments) deducted directly from their salary.

Credit Union Chief Executive Martin Groombridge said: “Christmas can be a costly time for all of us, and especially for those with kids, but it’s important you don’t build up expensive debts to pay for it. At the Credit Union, we would never encourage you to borrow more than you can afford, but one of our fair and affordable loans could be just the solution you need. Whether you need to borrow a little bit for this Christmas or would like to start planning your savings for next Christmas, the Credit Union is here to help.”

 

Top Tips for Managing the cost of Christmas.

  • Prepare and plan: Use the Credit Union budget planner
  • Make a list of things you need to buy (presents, food, travel…)
  • Set an upper budget and stick to it
  • Open a Christmas Savings Club with the Credit Union

 

What is the Deadline for Christmas Loan Applications?

We know how important this time of year is. To make sure we have time to look at your application and to get the money to you in time for Christmas, please make sure you have applied before 5pm Fri 15th Dec.

Not a member yet? Join NOW!

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Tel: 020 7561 1786 (Multilingual advisers available)
Email: info@credit-union.coop

If you have a loan from us and need a little help managing repayments then
please call us on 0203 763 8397 to speak with one of our friendly Loan Support Officers who will find a way to help.

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© 2026 LCCU  |  Complaints  |  Privacy Policy

How We Decide to Whether to Offer a Loan – The Basics

The Credit Union’s primary objective is to help members avoid or escape from debt by promoting a culture of saving. When we offer loans, we only do so if the borrower agrees to save a little while they repay. The establishment of a savings habit is proven to reduce the harms and risks of long-term borrowing becoming problem debt. Basically, when we get a loan application our decision is based on the following two principles:

1. Do we trust the applicant to repay the loan?

2. Can the applicant afford the loan repayment

This guide is designed to help members understand our thinking so you can best prepare if you should need to apply or re-apply for a loan.

1. Key Points in Our Assessing Trust of the Applicant

a) Has the applicant started saving? The money we lend is members savings so, especially at busy times, we have to give priority to loan applications from members who have made at least one savings payment. That first payment is good evidence that you are a real person and helps us confirm identity.

b) Proper Proof of ID & Address? What forms of proof of identity and address has the member provided? If you are able to connect your bank account through ‘open banking as art of the loan application process it a good way of proving ID. First time loans may be required to use online Open Banking.

c) Previous Borrowing History. Has the applicant borrowed and repaid us previously? Previous good repayment record supports any application.

d) Did the applicant inform us of other money owed? Failure to list all debts in the application process is likely to result in the loan application not being approved. It suggests that the applicant is either not in control of their money or not being completely honest with us and in either case we cannot put our members savings at risk by lending. Credit Reference Agency checks are used to show us what money is owed and to whom.

e) Is the member sensible with money? When we review the bank transactions of the loan applicant, we often see patterns of expenditure that suggest the applicant is not taking a sensible approach to expenditure. Changes in the way they manage their finances would suggest that the loan would not really be necessary. We want to help people be in control their finances and do not want to lend members savings to people who are not deemed sensible with the way they spend. This may be things like gambling, excessive shopping and/or eating out/takeaway food deliveries.

f) Always be ‘up front’ in your application. Honesty pays. We do not judge.

2. Key Points in Our Assessing Affordability for the Applicant

a) Is this loan in the member’s best interest? The value of the loan application in comparison with your income is a key measure of affordability. The loan interest members pay on loans pays our staff salaries, but we are not out to profit from you, rather we want members to borrow less over time and take control of their finances.

b) Positive Bank Balance at Month End? Is there money left in the members bank account at the end of the month that would be sufficient to cover the loan repayment if approved? If not, the member must explain how the loan would become affordable, for instance, by reducing expenditure in other areas.

c) Is the applicant struggling with existing debts? When we review the bank transactions of the applicant we can see income and expenditure. If the loan applicant tells us how the loan will clear other debts and reduce their expenditure this will help us understand affordability.

d) Is the purpose of the loan considered sensible? If the applicant is not paying essential bills such as mortgage or rent then a loan for a car or holiday is likely to be unwise and unaffordable.

e) Has the applicant fully explained why they need to borrow? Always feel free to email or call us explaining the circumstances that mean you need to borrow. The reasons for needing to borrow are complex, but being honest and explaining the circumstances can often help the ordinary humans on the Loans Team at the Credit Union to be able to assess trust and affordability. You briefly explaining your thinking about affordability gives us confidence that you are thinking sensibly about money, and sometimes allows us to suggest alternatives that may well be in your best interest.

f) Is the loan to clear other more expensive debts? Credit Reference Agency checks are used to show us what money is owed and to whom. If your loan application is to pay off other debts, stop and list every one of those debtors.Work out the cost of each. Consider clearing one or two at a time if its your first Credit Union loan. Pick them off one or two at a time, the most expensive first.

g) Has the applicant stopped to think about affordability? The ‘Your Money’ section of our website provides access to a budget planner which, if used and shared, gives us good evidence of affordability. Particularly helpful for loan applicants in financial stress. We hope this gives you an idea of how we decide yes or no to loan applications. The decision is by one or more other credit union members on our Loans Panel. We hope this helps you understand our thinking so you can best prepare if you should need to apply or re-apply for a loan.

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