ABCUL: Get through the recession with a credit union

14 Nov 2008

Low cost loans are one way in which credit unions can help people through the recession, it has been claimed.

The Association of British Credit Unions (ABCUL) has given a list of services unions offer which could help people to get through the credit crunch.

As well as cheaper loans and flexible savings products, credit unions also offer current accounts with debit cards and Christmas Savings Clubs to enable members to set aside deposits before receiving a lump sum for festive season shopping.

Some "highly competitive" fixed and variable-rate mortgages are available from a couple of the larger unions, while many also offer free money advice.

Credit unions are also covered by the Financial Services Compensation Scheme, protecting the first £50,000 of a member's money.

Last month, ABCUL chief executive Mark Lyonette reassured members that credit unions are "well sheltered" from the global financial turmoil as they do not rely on borrowing from other banks and international money markets, nor buy up debt from other organisations.

 

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