We are delighted to be part of a new campaign called Affordable Credit for All. Around ten million people in the UK are excluded from obtaining credit at reasonable rates because they are, or have been, in negative financial situations, usually not of their own making. This results in many individuals having to turn to loan sharks, very expensive payday loan companies or doorstep lenders to access credit. Over the past five years, the amount of money people have borrowed through payday lenders in the UK has boomed from £900m to £1.8bn. It is now estimated that 2million people use payday loans.
Nottingham Credit Union, along with credit unions around the country offer an affordable lending solution – people are able to borrow money whilst still being in charge of their finances, as they know how much to repay and when. The interest rate on a loan from a credit union is much lower than payday lenders, doorstep lenders and loan sharks. In the UK, there are over 1.6million credit union members who were lent over £5 million during 2015.
We are working alongside NAN who offer advice to people on where they can get affordable credit from. This partnership means that people are informed about credit, and will prevent them from sinking further into poverty and debt by being educated about affordable lending ahead of borrowing.
This new campaign around Affordable Credit for All believes in raising awareness about affordable lending and credit unions, so that individuals have all the information and choices to make the correct decision when seeking to access credit to ensure that they are not stepping into a deep journey of debt and poverty.
We are proud to be part of the Affordable Credit For All campaign and support the belief that by working with other organisations that believe in financial inclusion and a need for affordable lending –more can be done to help the ten million people in the UK who are currently excluded from obtaining credit at reasonable rates.
If you are in debt, please seek help from NAN or any other reputable advisory organisation/service. We can help with affordable and responsible lending, so please get in touch.