Credit Unions of Wales launch campaign against high cost credit providers
02 Nov 18
In the lead up to Christmas, Credit Unions of Wales is spearheading a campaign ‘Credit2Wales’ for Welsh people to take a stand against high cost credit providers.
According to the Money Advice Service, more than one in six people in Wales are at risk of being unable to keep up with credit repayments.
Marking the launch of Credit2Wales on International Credit Union Day, Patron of Credit Union of Wales, Jane Hutt AM said: “Unmanageable debt isn’t just a finance issue. It impacts all elements of our lives, including relationships, work, health, mental health and, of course, the ability to look after our families.
“Credit isn’t bad, we all need help sometimes, especially at Christmas, but it should be fair and manageable. We must refuse to allow ourselves, our families and our communities fall prey to high cost lenders, and stamp them out by turning to credit unions instead”.
Credit Unions of Wales compared the cost of an iPad with a well-known rent-to-own company against buying it on the High Street using a credit union loan. The rent-to-own retailer would charge a 99.9% APR interest rate, meaning the total repaid over two years would be £676. This was a t least £254 more than borrowing from a credit union, almost enough to buy another iPad.
Andrew Johnson, Advice Manager at the Money Advice Service said: “The 18th October is International Credit Union day which aims to build upon the work and recognise the achievements that credit unions have made in providing a range of financial services to its members.
“Credit unions are financial co-operatives, owned by the people who use their services, and not by external shareholders or investors. Where profits are passed on to their members in the form of better rates and lower fees when compared to high cost credit alternatives.
“At a time when people are more likely to seek high-cost short-term credit, access to affordable credit and understanding your options is vital”.
Credit Unions of Wales recommend that people look at the interest rate, term of the loan (how many weeks, months or years) and total amount repaid to be sure they are getting the best deal.
The campaign will run from October through to December and encourage people to use the social media hashtags #credit2wales #credydigymru