LCU Makes £1m Available to Help its Members’ FinancesComments Off on LCU Makes £1m Available to Help its Members’ Finances
Leeds Credit Union Makes £1m Available to Help its Members’ Finances
Here at Leeds Credit Union we have begun 2023 by launching a new initiative to help our members consolidate their debts and lower their monthly outgoings.
By making £1 million available to our 37,000+ members across Leeds, Wakefield, Harrogate Craven and Barking & Dagenham, plus residents of associated housing associations and select employers, we hope to help them tackle the cost of living crisis by stopping them overpaying on interest for store cards, overdrafts, credit cards and high interest loans.
We have taken the decision in response to feedback from our members in the run-up to the recent festive period, who revealed that 48% of them were unsure how they would afford Christmas, raising concerns many would turn to high interest loans or rack up credit card debt.
Stephen Porter, our Head of Member Experience, said: “With the cost of living crisis continuing to affect communities across the region, many households are falling into debt, often to multiple lenders.
“Making a significant amount of money available to our members so they can consolidate their debts makes it easier for them to pay off their existing debts in one easy, monthly payment. Because we offer lower interest rates than most other lenders, our debt consolidation package also helps members reduce their interest payments, further improving their financial situation.
“To try and make 2023 less financially stressful for our members, we’ve also launched this year’s Christmas Club saving account. This means they can start saving for Christmas 2023 today, gradually building up a pot throughout the year rather than having to try and find money in a mad rush come December. Savings will be available from November 1st.”
Here are two key examples of how we’ve already helped some of our members:
A member came to us wanting to bring all of their debts into one affordable monthly repayment. They were spending £417 in monthly repayments across a loan, a credit card and a catalogue. Through a consolidation loan using our payroll scheme, the member has now simplified this all into one monthly repayment of just £225/month. It’s also worth nothing that the credit card alone was almost £7,000 at 23.9% APR whereas our loan is at 6.1% APR.
Another member wanted to consolidate an overdraft and a loan that they had with their primary bank. We provided a loan at 7.1% APR versus the 13.9% they had, this will end up saving out member around £4,000 in interest over the next five years on their £23K loan.
To apply for a debt consolidation loan, members can visit one of our highstreet branches or head to our website here.