Credit unions not loan sharks
26/09/08
Due to the recent credit crunch people with financial difficulties have been told to ask their local credit union for help rather than risk borrowing money from a loan shark.
The credit crunch has made it very hard to secure a loan from the normal avenues leaving people nowhere to turn to. People are been advised to go along to their local credit union rather than visit any illegal money lenders. Credit unions are there to offer savings and loans to the local community.
Doreen Hatch, of Kett's Credit Union, said people could borrow twice the value of their savings as they accumulate.
"The savings don't get touched and the loan is taken out against that and they pay one per cent interest on the total each month," she said.
The payment plans are created with an incentive to save while paying off the loan.
The Times last month reported that local credit unions will be reformed next year to encourage greater use, especially to those who are not well off.
