Credit unions could help those looking for cheap finance

The ability to get affordable finance has really diminished over recent months as a result of the global credit crunch, which has resulted in poor credit conditions and reduced access to finance.
Many people have found that getting an unsecured loan through their bank is now too expensive, or in some cases is impossible due to the tighter credit conditions in place.
Officials are now suggesting that many consumers may find that a credit union offers the ideal solution to their borrowing needs, enabling them to borrow small amounts of money for a very low rate of interest.
Officials state that this is a far more sensible solution than turning to doorstep lenders that charge a very high rate of interest.
One official said: “Credit unions offer a great alternative to money shops and payday loans for people needing small loans over relatively short periods. Credit unions charge no more than two per cent on the reducing balance of a loan and many charge just one per cent, which would mean that £1,000 taken out for a month and paid back weekly would accrue just £5.76 in interest at one per cent.”
She also said: “I would recommend that anyone needing a small loan first looks to their own bank or building society or credit union for a loan, rather than using doorstep lenders or money shops, if they want a good deal. Credit unions are not as well known in Great Britain as they should be but they are basically financial co-operatives which aim to get the best deal for their members. In the US and Ireland, for example, credit unions are very much mainstream financial institutions with millions of members.”