New Credit Unions Hope to Decrease the Use of Unlicensed Loans

There is good news for those in the United Kingdom who have been seeking out unsecured loans from unqualified lenders. Otherwise known as loan sharks, these lenders are commonly used in some areas of the UK such as Stroud or Gloucestershire. For people with nowhere else to turn, these loan sharks may be a blessing. However, rarely do the agreements get fully honoured, and those who have used the services of unsecured lenders often have regrets. One of these regrets is the terribly high percentage of interest that they pay. Often the principle amount of the loan is more than doubled over the course of a short period of time.

The recent news has been reported by all major media outlets in the UK about how the increase in credit unions will affect the loan situation in the UK. In Gloucestershire, a credit union which will have branches all over the city will be focused on making it easier for people to find money for their projects without resorting to illegal loan sharks.

This particular credit union will be open to anyone in the area, even those people without credit histories. Those who have fallen on hard times financially are sometimes tempted to go to loan sharks, but this is no longer necessary in the United Kingdom. With the growth of credit unions in many areas which were once territory for loan sharks making high percentage rates, citizens have many more choices than they once did.

Suzanne Wigmore, who heads this new service, has been proud that the credit union movement has been growing and growing as people become more aware of the services these entities provide. The areas of particular growth of these credit unions are Gloucester, Cheltenham, and Stroud.

Ms Wigmore has stated that the credit unions have people out on the streets in these crucial areas promoting the presence and benefits of the credit unions. These street teams have to date referred numerous people away from illegal loan sharks and towards credible credit unions.

One such story comes from a resident of Forest of Dean, where lending to people in rural areas is needed very much. Di Martin used the services of a credit union when her family had problems after borrowing cash from a roving lender. Mrs Martin insisted that there is an increasing demand for these services in areas such as Forest of Dean, where people need access to money without the high interest rates and repayment terms that come with less credible lenders.

The credit unions are appreciated by those in these areas because of a few different elements. These include the fact that credit unions will loan money to those who have no credit history. In addition, the interest rates which are agreed upon are not high. Finally, and most importantly, the credit unions are not trying to get people into terms which they cannot complete. They will not have a benefit if their customers must default on loans and other money borrowed. The idea for the credit unions is that when there are happy clients who can complete their payments, the credit union itself will also experience growth.