A resident gave this loans flyer to me yesterday; it is being posted through Newton Aycliffe doors in the West Ward-Horndale area.

loans leaflet
WHEN I checked out their website, their examples show:

(1) a ‘finance charge’ (i.e. interest) of £260 on a £400 loan, representing an Annual Percentage Rate interest of 433.5%, and a total repayment of £660. Basically, if you borrow £400 on this loan, the first 20 weeks pays back the principle, and 13 weeks (the next **quarter of a year**) is spent paying interest to the company.

(2) The Annual Percentage Rate interest on their example £200 loan is 756.5%. I just remind you that 750% means **seven-and-a-half times**.
(For legal reasons, I need to say that this appears to be a valid, legal business.)

BY CONTRAST, if you are a member of the NEFirst Credit Union and were offered a £400 loan (even at their higher interest rate of 3% per month) then 22 payments of £20 would see the loan paid off and your total repayment would only be £440 – i.e. 20 weeks to pay back the principle, and just *two* weeks paying the interest.

Alternatively, if you could afford £20 per week for 33 weeks, that would service a NEFirst Credit Union loan of at least £614 (depending on the specific loan agreement).

(NB NEFirst Credit Union might or might not offer you a loan, depending on your circumstances – they are not give you a loan which will ruin you.)

As always, my strong advice to people who might struggle to meet a sudden financial shock would be to join the Credit Union, build up a small deposit there, and then try there *first* if you need a tied-me-over loan: http://nefirstcu.co.uk/how-to-join/

NEFirst has a service point at St Clare’s Church Thursdays, 10.30-11.30am and you can just turn up to suss them out.

John D. Clare