Dear Sir
Your readers may have heard about the problems of the many people struggling to make ends meet and resorting to Pay Day Loans.
These often entail exorbitant rates of interest and borrowers can end up in serious financial distress. Arising from this there has been a great deal of welcome publicity for Credit Unions: indeed the Archbishop of Canterbury, Justin Welby, has spoken out strongly on behalf of this organisation.
Having worked now as a volunteer for the Durham County Council Credit Union, for two years, I would like to tell you of the advantages of joining the credit union in Aycliffe.
First of all I need to point out that we have had a change of name. We in Newton Aycliffe now operate under the banner of N.E. First Credit Union and there are over 20 branches running throughout the county.
We are now housed in the Town Library and are open on Thursdays between 11am & 12noon. I realise this may not be convenient for all and I would love to be able to offer more opening hours. This may happen in the future, but is dependent on having sufficient members and sufficient volunteers. There are, however, other means of operating to which I will return later.
The Credit Union operates mainly on two separate fronts: (a) savings (b) loans. Members can save as little or as much as they wish. Individuals with small amounts to save may often encounter resistance from High Street Banks. They will receive no such resistance from the Credit Unions – save whatever you can afford. Once the habit of regular saving is established it is amazing how the savings grow. Then when extra money is required, e.g. for holidays, birthdays, Christmas or unexpected ‘rainy days’ there is something to turn to. I cannot emphasize too strongly the value of regular savings.
The problem of limited opening hours is easily solved. Once a member has joined he/she will be issued with a Pay Point Card which can be used at the Post Office and other Pay Point outlets at any time.
Once a year a small committee, at H.Q. in Durham, meets to decide on Dividend (interest) to be paid on savings. This is at present small but at High Street Banks it is almost non- existent.
Loans: Once a member has saved for a few weeks it may be possible to take out a loan, should there be a need. This again is judged by a small committee and each application is treated on its own merits and on the apparent reliability of the borrower. The huge advantage in taking loans from us is the rate of interest repayable. This is variable but normally around 1% per month – compare that to Wonga!!!
This is briefly what the Credit Union is all about. I hope I have aroused your interest. Should you decide to visit us you will receive a warm welcome from our volunteers in very pleasant surroundings.
Undoubtedly there will be many of you who will say “well its not for me I cant get” the answer is simple ring me on 315645 and I will make arrangements to meet with you and hopefully enrol you. Please show this article to anyone you feel would benefit by joining us.
Harry Drake