People in Swansea are urged to avoid the high interest charges on Christmas loans and use the town’s credit union instead.
Credit unions are non-profit organizations that offer a range of ethical products to savers or those in need of loans.
Alyson Pugh, cabinet member of the Swansea Council for Community Support, said: ‘With many people facing financial hardship as a result of the coronavirus crisis, many will undoubtedly be looking to borrow money for them. see them and their families until Christmas.
“I urge people to carefully consider the interest rates they might be charged as they could end up paying £ 1,000 to pay off a £ 500 loan within a year.
“Credit unions charge much lower rates and work with borrowers to try to make sure they are able to pay for their plans.
“Interest on a credit union loan is charged on the declining balance of the loan, there are no hidden fees or prepayment penalties, and many applicants receive free life insurance.
“They are able to do it because they are not making a profit for the shareholders.
“Credit unions are run by community members for the community. “
In addition to offering loans, credit unions also offer safe and secure savings products.
The link to the Swansea Bay Credit Union website is here.
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