How To Use Your Local Credit Union To Your Benefit
Credit unions concept is one of the most effective ways to build a better lifestyle and stay on top of your finances. That is the purpose of its existence! Borrow and save, save and borrow in a complete peace of mind.
But is credit unions are amazing, how don't we learn about them?
Credit unions, unfortunately, do not have the marketing budget that payday loans and banks do. The promotions are always local and very limited. Mostly word of mouth. Smaller credit unions even have volunteers to keep it running for locals which marketing is almost non-existed.
But rest assured that every corner in UK there is a credit union. Find your local credit union via searching Find Your Credit Union using your postcode or your work postcode. You can also ask your company who is their partner credit union.
With the rise of cost of living and the financial struggles, many people have had it hard to access affordable credits. That alerted the government to initiate awareness campaigns about credit unions. Local councils have been pushing the knowledge to individuals as well to businesses, encouraging them to open salary deduction schemes with local credit unions. The government went further and established fair4allfinance to make financial services fairer for everyone. They work side by side with credit unions all over the country right now.
There are also loud voices advocating reaching out to local credit unions, like Lewis Martin and Money Helper websites.
How to benefit from your local credit union, really?
The best way to benefit of credit unions like CLEVR Money, is when you turn its services into a lifestyle solution. We have learned from our members of years about how they use our services and what they recommend to bring this up to everyone:
Contributors savers:
Those are our members who do not need our services, but are contributing to their community. Their savings most of the time have never left their account. They have the sense of responsibility towards their people and know that what we do changes lives.
Saving only:
Those members save via salary deduction or direct debit regularly. They already planned when they want to withdraw their savings. The main reason they use savings via those methods, is that the savings are hidden from their sight and won't feel the urge to spend it on an impulsive online purchase for example.
They withdraw usually to cover Birthdays, holidays, special occasions, emergency costs (appliances replacement, fix car/home...).
Those members usually tend to raise the amount of monthly savings regularly to accommodate their needs. They become good spending planners with time.
The Christmas savers:
It's very popular to save for Christmas. That is the major spending month of the year for them. Especially larger families. They save throughout the year into the dedicated saving account, which they cannot withdraw from. The only period of the time this account is open for withdrawals is between 1st November and last working day before Christmas.
The major issue with it, is people forget their login details from year to year! They never worry about Christmas expenses though.
Borrowing small amounts:
Those members borrow when they need it, while they are saving smaller amounts along the way. Many are on low income, that little extra loan helps cover all needs to all wants within the range of the loan amount and the savings they have. Usually they set a fixed regular amount, mostly via benefits or salary deduction.
Those members are best budgeters and great financial planners. They know exactly how much they need to spend, when to spend it and how much they need to save and borrow.
While they have this peace of mind, they also tend of focus on themselves and their family.
Borrowing large amounts:
Those members have found us as their financial saviours. Usually, when they've found us, they've been already in financial mess; such as credit cards debts, high interest car loans...
They commit themselves to get out of the debts cycle. If they meet our requirements, then we consolidate their debts. For this type of loans, we get more careful and prefer to use salary deduction as preferred payment method. Therefore, we encourage them to pay via their salary deduction at all times.
It takes few years to clear out large debts, but it takes them one second to loose out all the stress, remove all worries and get set on a plan that they control their own finances and take responsibility over their life. We have helped many people through the years that they are still members with us, debt-free and rely on their savings now. It is doable with a good will and some help.
Borrowing and saving cycles:
Members who are not able to save larger amounts regularly, save small amounts. That is when they borrow, then top-up their loan few months later, smartly keeping their savings to grow, using the low loans interest to their benefit and keeping this cycle going on. They withdraw their savings when it is necessary to do so, or if the top up is not enough to cover the occasion.
Those members rely on our help. they can be in transitional period of times, such as lost a job and looking for another, have a job but poorly paid, work less hours and relies on benefits or have special needs and not able to upgrade their jobs options.
