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Plan ahead to avoid payday loans

The latest news in your area

The latest news in your area

A local ethical finance group is urging people to plan ahead for their festive celebrations and avoid giving loan sharks or payday loan companies a Christmas bonus.

With less than 307 days to go, LincUp, the Lincolnshire credit union, has launched a Christmas Saver Account in a bid to ease the burden for people who risk getting into financial problems over the yuletide period.

The LincUp Christmas Saver can be opened through any of the credit union’s 16 county collection points or the member office at 390 High Street, Lincoln. The account offers savers peace of mind as it is fully protected by the Financial Services Compensation Scheme.

Regular savers can also access a guaranteed Christmas loan which is repaid at a rate much lower than those offered by doorstep or payday loan providers.

Linda burden, business and development manager said: “There are unscrupulous lenders out there who rub their hands with glee when December comes around. They know they’ll be getting a Christmas bonus – lots of people are ready to resort to loans with unmanageable repayments just to get through the festive period.

“It doesn’t have to be like that though. Putting a little away every week or month will give you a lump sum in December which will help towards your celebrations and you can also top up with a responsible loan.

“Our Christmas Saver Account is fully protected. It also offers freedom as you get your savings back in cash, not vouchers. We are also a mutual, owned by our members who save with us and you’ll also get a dividend on your savings - a nice little extra.”

The collection points are in: Boston, Alford, Mablethorpe, Skegness, Horncastle, Louth, Gainsborough, Brookenby, St Giles, Moorland and Birchwood Lincoln, Sleaford, Grantham, Long Sutton, Stamford and Spalding.

The aim of LincUp is to provide people living in Lincolnshire with an alternative to mainstream financial services – an easy way to save and a clear and simple way of borrowing with no hidden charges and an understandable breajdown of their payments and interest

Benefits of being a credit union member include:

l There is no minimum amount to save – small deposits are welcome.

l Savings aren’t invested in unethical companies.

l No charges or fees.

l Any surplus is returned to the members.

l Loans inccur a small amount of interest, typically between 1 per cent and 2 per cent per month on a reducing balance.

l The acceptance criteria for a loan is based on a member’s ability to pay it back rather than simply past credit history.

It’s easy to join LincUp. All you have to do is fill out a simple application form and provide a proof of identity and proof of address.

More details can be found at LincUp’s website - www.lincscreditunion.org.uk

For more information, or to arrange further interviews or pictures contact Linda Burden. Office: 01522 528885/ Mobile: 07767166963 or email: lburden@lincupcu.org

 

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