Money Saving Expert Martin Lewis has joined forces with the Welsh Assembly Government to spread the word that credit unions are a safe and reliable way to save money for people from all walks of life and are an excellent alternative to high interest or illegal moneylenders to whom people might turn in the recession.
Martin is supporting the current Credit Union awareness campaign.
He said:
“Credit unions are there to look after members of their community. You can save with them in the good times and borrow back from them in the bad times. It’s the perfect institution for doing just that.”
Credit unions offer savings accounts, loans and in some areas current accounts. They can help customers manage their money and some also offer debt advice. They are owned by their members, rather than by external shareholders looking to make a profit, and are fully regulated by the Financial Services Authority.
With £2.75 million of support from the Welsh Assembly Government and European funds over the past decade, credit unions in Wales have seen a five fold increase in membership and assets, from 10,000 and £4 million respectively in 2000, to over 50,000 and £21 million by the end of 2009.
In the nine month period from October 2008 to June 2009, the Association of British Credit Unions Ltd (ABCUL) recorded a 10% growth in membership of their affiliated credit unions, supporting the widespread belief that credit unions are becoming increasingly popular as the effects of the credit crunch impact upon consumers. In the 18 month period from April 2008 to September 2009, the money deposited in credit union savings accounts rose by over 17% from around £15.5 million to £18.25 million.
Social Justice Minister Carl Sargeant added:
“Credit Unions recently passed the milestone of recruiting their 50,000th member and I congratulate them for that. Membership is still relatively low in Wales at 1.83% of the population, so there is plenty of work still to be done to convince people of the benefits or saving with or borrowing from credit unions.
“The Assembly Government has placed credit unions high on its social justice agenda over the past decade, largely due to the role they play as providers of accessible, affordable savings and low cost loan services. Our support has paid off in that there are now credit unions in every part of Wales and it is possible for anyone living or working in Wales to become a credit union member and we will continue to support the movement to grow and develop their services.”
