Ethos Public Relations Manchester

Credit unions help savers this Christmas

by Ethos public relations

Three years after the collapse of Farepak, in which more than 150,000 customers lost their money, more and more people are choosing credit unions to help them save safely for Christmas.

Over the two years to 2008, The Association of British Credit Unions (ABCUL), saw a 15 per cent increase in savings in their member credit unions.

And now more and more individual credit unions are offering Christmas savings accounts which provide a safe and valuable way to save, helping people to manage their money ahead of the most expensive time of the year. 71% of credit unions said they offered a Christmas Savings Account in a recent survey, with a further 18% planning to offer the account in the future.

Farepak customers lost an average of £400 each when the Swindon firm ceased trading in October 2006, with some families losing closer to £2,000, just two months before Christmas.

Mark Lyonette, Chief Executive of ABCUL - the Association of British Credit Unions - (pictured) said: "Credit unions, as community-owned and controlled organisations, offer local people a well-trusted financial solution.

"By making regular deposits into a Christmas savings account, members can relax knowing that they haven't had to run up huge credit card bills or taken out an expensive personal loan to pay for Christmas. And members can spend the cash they've saved anywhere they want as they're not tied to using vouchers in only certain stores."

One credit union with a popular Christmas savings account is Scotwest Credit Union in Glasgow which introduced its account following the Farepak collapse.

Fiona Greer from Port Glasgow, works in the Housing Benefits Office for Inverclyde Council, and has been a member of Scotwest Credit Union since 2003. This is the third year Fiona has saved using a Christmas Savings Account with Scotwest, having switched to the credit union from another Christmas savings company.

She hopes this year to have saved around £600, which will allow her to have an enjoyable Christmas and buy presents for all her friends and family. The account runs until the middle of November 2009 and account holders, like Fiona, will receive a dividend on the savings they have accrued over the year.

She said: "Scotwest's Christmas Savings Account is a fabulous idea. It allows me to put away small amounts of money each month throughout the year and I don't miss it as it comes straight off my salary and goes into my savings. It also allows me to save my money securely, providing me with the money to ensure I can have an enjoyable Christmas. I would really encourage others to follow suit, especially if they have a tendency to spend money they don't have during the festive period!"

Rod Ashley, Chief Executive of Scotwest Credit Union said: "Year in year out thousands of people succumb to the pressures of consumer spending and run up huge amounts of debts throughout the festive season. The Christmas Savings Account prevents people from getting into financial trouble and ensures they have a stress free and enjoyable festive period."

To find out how your local credit union can help you save for Christmas, visit the website at www.abcul.coop or call ABCUL on 0161 832 3694.

Posted at 29^th October 2009