Families in Bristol and the West saved over £623,000 in interest over the last 12 months by turning to Bristol Credit Union in 2015 for their Christmas borrowing.
Last year we issued over 1,100 loans worth just over £1 million in the run up to Christmas.
Bristol Credit Union is dedicated to helping local people save and borrow at fair rates. As well as helping people to build up savings, we provide fair and affordable loans at a much lower rate than pay day loans or other high cost lenders.
James Berry, CEO of Bristol Credit Union says:
“At a time where there is extra pressure on household finances, people may be looking to spread the cost through borrowing, with many turning to well-known short term lenders. But this comes at a high price. The average cost of a Payday loan is £25 -£30 a month per £100 borrowed. Compare this to £3 a month for borrowing the same amount from Bristol Credit Union – the saving is huge.”
According to Money Advice Service research in 2015, the average family was expected to spend more than £800 celebrating Christmas.
James Berry continues:
“Last year we helped over 1,100 families across Bristol and the west of England in the run up to Christmas, with an average loan of £887. Based on the high cost alternatives people might otherwise have turned to, we’ve calculated we saved people over £623,000 in interest over the course of 2016 – money going back into our local economy.”
Interest saving calculation
1,188 loans issued, with an average value of £887. Interest cost on a loan of £887 with BCU, with weekly payments over 52 weeks is £172.15. Interest cost on a £850 loan from Provident over 52 weeks is £697 – individual saving is £525. £525 multiplied by 1,188 = £623,522.
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