Credit Crunch

Knowing the difference between credit and affordable credit is not always easy. As individuals it is easy to get confused by all the different loan products available. Quite often the term APR* (Annual Percentage Rate) is used by lenders in promotional material. It's important before you sign any agreement to understand what this means and be as informed as possible so you know exactly how much you will end up paying on top of your agreed loan amount.

*APR is the annual percentage rate - this shows the overall cost of a loan, taking into account the term, interest rate and other costs. (Money Made Clear Pamphlet, Financial Services Authority)

The following is taken from an independent web site lenderscompared.org.uk.

The table above illustrates how important it is to understand your lenders offer. Danum Credit Union Ltd offers the most affordable loan by means of total amount payable. If a lender only promotes a monthly payment it may be to disguise a significantly higher APR. A credit union can offer a more competitive total amount payable because they run as a not-for-profit lender and do not have to pay to outside shareholders.

What is a credit union?

They are a community savings and loan cooperative, where members pool their savings to lend to one another and help to run the credit union.

Credit Unions aim to help you take control of your money by encouraging you to save what you can, and borrow only what you can afford to repay.

Why choose a credit union?

If you want the flexibility to save what you can, when you can;
You prefer a local cooperative that does not need to make profits for outside shareholders; or
For any reason you are having difficulty opening an account with a high-street bank or building society.

Credit unions in Rotherham

In Rotherham we have four Credit Unions:

• Rothersave Credit Union
  
• LASER Credit Union
  
• Transave Credit Union
  
• Ryton Credit Union

Each Credit Union offers a variety of savings services and financial products that can suit individual needs. Not all credit unions offer the same products, so check which one best suits your needs.