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NewsCommunity bank saves residents £85,000 on high interest Christmas loans
Community bank saves residents £85,000 on high interest Christmas loans

Not-for-profit community bank Wolverhampton City Credit Union has saved residents in the city and South Staffordshire £85,000 in interest on Christmas loans.

The Worcester Street-based credit union is offering low interest Christmas loans to help people avoid problem debt and financial hardship in the New Year. It has approved over £120,000 in Christmas loans to date, helping residents steer clear of payday and doorstep lenders.

Manager Matt Goulding said the credit union had also helped over 2,000 residents save for Christmas with a special account.

He said: “It’s the most expensive time of the year which can put families under enormous pressure. Taking out a high interest loan at Christmas can lead to problem debt in the New Year. One doorstep lender operating locally quotes an Annual Percentage Rate (APR) of 299.3%, so a £500.00 loan taken out over a year costs £936.00.

“In contrast, we offer competitive rates of interest - from 6.1% to 34.9% depending on the size of loan, term of repayment and circumstances. So far, we’ve helped residents save around £85,000 on high interest loans. We also ensure we lend responsibly only to people who can afford to pay. If someone is already struggling with problem debt, we refer them to excellent agencies such as Citizens’ Advice Bureau.”

This year, the credit union is working with six employers to promote a special low interest Christmas loan to thousands of local workers. Matt added: “We’re currently working with some of the biggest employers in the city to offer the loan through our payroll deduction scheme. This enables staff to save directly from their salary and to borrow at low rates of interest and repay through their salary.

“Employers know that money worries are a major cause of stress and problem debt can lead to anxiety, depression and sickness absence. It makes very good business sense for them to promote fairer finance at work with the credit union.”

The credit union is open to people living, working, studying or volunteering in a WV postcode area. It runs a payroll deduction scheme partnership with: The Accord Group; City of Wolverhampton Council; South Staffordshire Council; South Staffordshire Housing Association; Royal Wolverhampton NHS Trust; Wolverhampton Homes.

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  • Wolverhampton City Credit Union
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