PEOPLE in Melksham who are struggling financially and are considering using payday lenders are being urged to use the West Wilts Credit Union.
Latest figures show that borrowing £100 over one year from the West Wilts Credit Union, who have a branch based in Melksham, will cost the same as borrowing £1 for one day from a payday lender. A West Wilts credit Union has a typical interest rate of 12% APR with a £100 loan costing £107 to repay over 12 months. Payday lender Wonga charge an interest rate of 5853% APR with a £100 loan costing £491 over the year. However, if a payment is missed with Wonga, charges and doubling interest rates mean over a year it could cost £4,417.77 in return for the £100 borrowed.
The Credit Union has a collection and information point at Melksham Library on Fridays between 10.30am-1.00pm where friendly advice, loans and savings can be discussed.
Sam Selman of the Melksham branch explains that the emphasis of credit unions is on saving, with the facility to borrow once you have been a member for a certain length of time.
He said, “We’re trying to encourage people to save a little and not only look to borrow. You can save all year for Christmas, for example, or if you save regularly, you can borrow if it is needed. We want to help educate people about saving so that they can help themselves eventually. We want to change attitudes towards money and help people learn to prioritise how they are spending their money. People can save a lot of money by coming to use us rather than using payday lenders who charge extortionate rates.
“We want to build up that trust with members so they know the service we are providing will be a massive benefit to them and help them turn their financial situation around and encourage good practices that they can use in the future.
“We have had many success stories, where people have been at their lowest point when joining, and some time later, they have savings and are enjoying their life more.
“We urge anybody concerned about their finances to come and see us and hopefully we can assist before things get worse.”
Credit unions are financial co-operatives, owned and democratically controlled by their members and run solely for the benefit of their members. Members can save with West Wilts Credit Union and then apply for loans if necessary.
A first loan is currently up to twice a member’s shares, with second and subsequent loans up to three times their shares.
Further details on how West Wilts Credit Union can work for you can be obtained by either ringing 01225 704907 or by visiting their existing collection point in Melksham Library any Friday from 10.30am-1.00pm. Alternatively visit www.wiltscommunitybank.co.uk
