Vauxhall's factory at Ellesmere Port is to be one of four plants in Europe that will build the new Astra.
Making ends meet is always hard when money is tight, and unexpected expenses only make things harder - especially when you have difficulty getting credit at reasonable rates of interest.
But there is an alternative to doorstep lending and other high-interest ways of borrowing money - Ellesmere Port & Neston Credit Union. Read on to find out more.
So what is a Credit Union?
A Credit Union is a profit sharing, democratically run-financial co-operative which offers convenient savings and low interest loans to its members. This means the members own and manage their credit union themselves.
The three main aims of a Credit Union are:
- To encourage its members to save regularly.
- To provide loans to members at very low rates of interest.
- To provide members with help and support on managing their financial affairs (if required).
What are the benefits of borrowing from a Credit Union?
- It is an easy and convenient way to save and borrow.
- It offers very low cost loans.
- Insurance at no direct cost.
- It's a way to learn new skills.
Credit unions can provide a focal point for a community by bringing people together, to work alongside each other for their own benefit and the benefit of the community as a whole with organised events, family fun days,- quizzes, etc.
A credit union can help to revive the local economy by keeping money in the community. Loans to Members can mean income for local shops and businesses.
Who supports Credit Unions?
Churches, Community Groups, National Consumer Councils, Citizens Advice Bureaux, Trading Standards, Police, Fire, Taxi Drivers, etc.
How do they work?
The members make regular savings, as little or as much as they wish. These savings then form a common pool of money from which loans are made to members.
Loan Repayment Interest Table
| Loan Amount | £250 | £500 | £1000 | |
|---|---|---|---|---|
| Weekly Payment** | £5.09 | £10.17 | £20.34 | |
| Interest Paid** | £14.23 | £28.55 | £57.16 | |
| Total to Repay** | £264.23 | £528.55 | £1057.16 | |
| APR | 12.7%APR | 12.7%APR | 12.7%APR |
**Loans repaid over 12 months assuming a February start
When members have been saving for a certain period of time (usually about 8 weeks) they can apply for a loan from the pool. Interest on the loan is charged at only 1% per month on the monthly reducing balance. 12.7% Annual Percentage Rate (APR).
In an emergency we may be able to help with small loans for those that have not met the 8 week saving criteria.
Who can join a Credit Union?
People who join a Credit Union must belong to what is called a "Common Bond". Credit Unions welcome everybody from within the Common Bond regardless of income, employment status or age.
You can join the Ellesmere Port & Neston Credit Union if you live, work, study or volunteer within the Borough of Ellesmere Port & Neston.
How do you join the Ellesmere Port & Neston Credit Union?
If you wish to join a Credit Union but are unable to visit in person, you can join by post. Please contact the Ellesmere Port & Neston Credit Union on 0151 355 7430.
How much do I have to save?
Whatever you can afford - £5 a week, £1 a week, 50p a week. The only requirement is that you try to save regularly.
Will I get interest on my savings?
As a Credit Union grows it may declare a dividend at the end of the financial year. This depends on how much surplus the credit union has at the end of the year after paying for its running costs.
How soon and how much can I borrow from the Credit Union?
Most credit unions expect you to save regularly for about 8 weeks before allowing a loan and any loan may be related to the amount you have saved.
The amount you will be able to borrow will depend on how much you need, what you can afford to repay, and the credit union's policies.
Security
Credit Unions have to be registered with the Financial Services Authority(FSA).
They are covered by the Credit Union Act 1979.
They are independently audited.
They are regularly monitored by the FSA.
Your business is private in the credit union because all members and Officers who have access to personal information must act in a confidential manner at all times.
Are they Insured?
They are insured against fraud and theft.
They provide life and loan protection insurance at no direct cost to the member payable to a nominated beneficiary (subject to age and health restrictions).
The life savings insurance means that if you die, your beneficiary can receive up to twice the value of your shares (subject to age and health restrictions).
The loan protection insurance covers the amount of your loan outstanding (subject to age and health restrictions).
Where do Credit Unions exist?
In most of the world, credit unions are well established. Starting in Germany 150 years ago they spread throughout Europe, to North America, Canada, Asia and to Ireland. One third of the adults in Ireland are members of a credit union. Credit unions are steadily increasing throughout the UK both in communities and the work place. ( e.g. Police Force, British Airways, Fire Service, local authority employees etc).
Credit Union Contact Details
Ellesmere Port & Neston Credit Union Ltd
Unit B1, Stanlaw Abbey Business Centre,
Dover Drive
Ellesmere Port
CH65 9BF
0151 355 7430
Website: Ellesmere Port & Neston Credit Union
Or come and visit us at one of our collection points
Every Monday 5.15 - 6.15pm at Ellesmere Port Library
Every Tuesday 12.00 - 2.00pm at Links Healthy Living Centre (Ellesmere Port - by the Civic Hall)
Every Friday 10.30 - 11.30 at Neston Library
1st Monday of every month Stanlaw Abbey Childrens Centre 1.00 - 2.00pm
Other credit union websites
The Association of British Credit Unions (ABCUL) website: Association of British Credit Unions
