Photocall: photographers are invited to the Welcome Credit Union in Moore Street East, Whelley, Wigan, WN1 3XZ on Thursday 19 at 10am. Lord Peter Smith, Cllr Chris Ready and credit union staff will be present.
Money is tight and the credit crunch is really biting. It’s not a good time for many people – job security, the mortgage, those bills – everything is suddenly a little more frightening.
In vulnerable times there may be more of a temptation to take rash action to try to solve cash flow issues. The council’s trading standards team are particularly concerned that residents don’t bite off more than they can chew with a dodgy doorstep deal from a loan shark.
Promises of quick cash may be tempting, but the advice is to steer clear: you’re likely to get a loan on bad terms and be harassed into paying back quickly or borrowing more. But there are solutions for people that avoid the dangers of loan sharks and their exorbitant rates of interest.
Council leader Peter Smith is recommending people look at credit unions. Cllr Smith says:
“I am delighted to be supporting the role of credit unions. Never has the need for access to borrowing at reasonable rates been more important. I hope more people will use their services rather than get involved with loan sharks.”
In Wigan Borough, there are two local credit unions. These are co-operatives who can assist people in difficulties as well as acting as secure banks for their members. They are fully regulated, open to anyone, have low interest rates for borrowers but in many cases can give savers a return on their cash which rival ISAs and the deals of the mainstream banks.
The Unify Credit Union is based in Ince and the council-backed Welcome Credit Union based is at the council tax offices in Whelley.
The council’s improvement champion, Cllr Chris Ready, is a supporter of credit unions. He says:
“They have always been popular in Ireland and America, whilst we’ve been a little slower to catch on here in Britain. But there are thousands of members in Wigan Borough – and that number is increasing in these difficult times.”
Cllr Ready wants to see locals doing their bit to help each other. He adds:
“If you can spare an hour or two a week to assist, we’d love to hear from you. As well as the existing groups, we’re looking to see if we could work at the local level in every ward to support people in these difficult times.”
By saving with a credit union, members build up a credit history and they can then go on to benefit from low cost loans. Credit unions consider each loan on an individual basis even for those on a low income or with poor credit history.
Diane Schanzl, who manages Welcome, says:
“There’s no profit, no investing outside in the troubled world markets. We are run by the members for the members – your money is safe and kept locally for the benefit of members.”
For further information on Unify you can call 01942 701706, or visit the Unify Wesbite (External link). For more information about Welcome you can call 01942 828702 or visit Welcome Credit Union Website (External link).
If you are having problems with loan sharks or need more information, trading standards recommend calling Consumer Direct on 08454 040506 (calls charged at local rate).
More info: John Rowbotham, Wigan Council Media and Communications 01942 827116
