Beware Christmas loan sharks, says First Minister
First Minister Carwyn Jones today [13th December] urged people finding it difficult to meet the cost of Christmas this year not to take out loans from high cost lenders, even if it seems quick and easy.
The cost of a personal unsecured loan from a high cost lender of £500 paying back £17.50 for 52 weeks means that you will actually pay back £910.
The same loan from a credit union would cost about £10.83 each week, paying back a total of £563.16, a saving of more than £340.
The First Minister will talk about the impact of high cost credit on families and communities during a visit to the Save Easy Credit Union in Llanelli.
The First Minister said,“Too many people do not realise that Welsh credit unions provide savings accounts, personal loans and other basic financial products that can save them money. Credit Unions offer a real alternative the activities of high cost lenders and illegal loan sharks, by offering safe and affordable alternatives.
“Tackling poverty and financial exclusion where it persists in our communities is one of my key priorities over the next five years. Credit unions are ideally placed to help achieve this.”
The Minister also emphasised he wanted to continue to raise awareness of credit unions.
He said,“Too often we hear stories about people on low incomes and others who are most vulnerable in our society not being able to access affordable sources of credit.
“Some communities remain blighted by loan sharks exploiting vulnerable people in an environment of intimidation and violence. This has a devastating cost on individuals, families and entire communities.
“Credit unions can and do make a difference in such a situation. Having strong credit unions here in Wales will help us as we continue to build the fair and just society we all want to achieve.”
Source: News Wales