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Make your money go further
One way to make your money go further during the recession is to stop paying too much for credit. If you have small loans with doorstep lenders and other high-interest credit providers, the chances are you could save your family a lot of money just by switching to a 'not for profit' community-run credit union.
Many doorstep-lending firms are household names but, as the Competition Commission has warned, the cost of borrowing from them can be enormous. Recently they have raised their interest rates, with one well-known doorstep lender currently quoting 254.5 per cent APR for its cheapest.
John Smith, Secretary of Hull and East Yorkshire Credit Union (HEYCU), says: "With everyone finding it harder to manage their money these days, the credit unions are filling a need for affordable credit. HEYCU's maximum interest rate is 26.8 per cent APR, so a new member with an introductory loan of £400 over 50 weeks can save £251 in interest charges, or £5 a week. Putting money in a credit union savings account instead of paying it to a doorstep lender can build up a handy nest-egg for Christmas or next year's holiday."
To apply to join a credit union complete a form and supply documents to prove who you are and where you live. If applying for a loan, proof of income is also needed. HEYCU is based at Hull Business Centre in Queen's Gardens. For opening times go to www.hullandeycu.co.uk or call 318518.
Over the past 10 years HEYCU estimates it has saved people £2m in interest charges they would otherwise have paid to high cost lenders. Not a bad contribution to the local economy.
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