Ethos Public Relations Manchester

Credit unions can help parents struggling to afford 'Back to School' costs

by Ethos public relations

In light of a recent report by Save the Children and Family Action, which revealed more than half of UK parents can?t afford all the 'Back to School' costs, the Association of British Credit Unions (ABCUL) is advising families that credit unions can offer assistance.

In the first return to school since the recession officially hit, the report revealed that over half of the parents surveyed, with an income of less than £30,000, could not afford everything their children needed for the start of the new school year.

The report also highlighted how families may be forced to miss vital household bills or cut back on already stretched grocery bills, with over a quarter admitting they would need to borrow money in order to afford all the 'Back to School' costs.

At times like these, some parents, often those on the lowest incomes, may be tempted to turn to high cost doorstep lenders or even illegal loan sharks, but there is an alternative in the form of credit unions.

Mark Lyonette, Chief Executive of the Association of British Credit Unions (ABCUL), said: "Credit unions have a vital role to play in today's difficult economic times.

"We understand that people are struggling with the rising cost of living. However we don't want to see parents backed into a corner of having to choose between essential bills and uniforms or pushed into high interest debt.

"We would like to advise parents that small, responsible loans are available from credit unions for such purposes.

"If, for example, a family borrowed £300 for six months on a typical credit union loan they would pay back £47.90 each month and pay less than £12 in interest. Nobody borrowing that amount from a credit union would pay back more than £322. This compares very favourably to charges made by doorstep lenders who would be likely to charge over £100 in interest for a similar loan.

"We are encouraging anyone struggling to cover new uniform costs, to contact their local credit union. They also provide easy ways to get saving, helping people budget for future bills and events such as Christmas."

To find your local credit union take a look at www.abcul.coop and call ABCUL on 0161 832 3694.

Posted at 31^st August 2009