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Some examples of credit union members who have been helped in this way can be seen on the People Helping People page. A credit union may be able to, for example, provide a loan to a member to pay off debts for which they are paying very high interest rates. The member can then repay the credit union instead, at a much lower rate of interest.
Credit unions may also be able to offer their members products designed to help people gain better control over their finances.
- Budgeting Accounts/Bill Paying Service – a number of credit unions offer this sort of account. A member pays in a fixed amount each week or month, and this payment is used to pay agreed household bills on the member’s behalf. An ideal solution for people who find it difficult to budget for essential bills, or simply like the convenience not worrying about when and how to pay their bills. This type of account also allows members to benefit from the small discount offered by many suppliers for customers paying by direct debit.
- Benefits Direct Accounts - In 2004, ABCUL secured a national agreement with the Department for Work and Pensions which enables credit unions to accept benefit payments directly on behalf of their members. Members can then withdraw the cash they need for day to day spending. Many people with this type of account may manage to save a small amount in the credit union, and members also have the flexibility to take out loans at an affordable rate, subject to assessment.
There are a number of agencies which provide free advice to people struggling with debt repayments, and these should be your first point of call. There is also a large number of commercial organisations which claim to be able to help people reduce debt repayments and secure extra credit: - in practice what they may provide is a larger loan over a longer period of time. While this may provide a short term relief, it may not be the best solution in the long term.
Some organisations which you can contact if you are worried about debt repayments are: -
Citizens Advice Bureaux are the largest network of free money advice agencies in the UK. They provide free, confidential and independent advice to anyone from over 3,200 locations including in bureaux, GP surgeries, hospitals, colleges, prisons and courts. Advice is available face-to-face and by telephone. Most bureaux offer home visits and some also provide email advice.
In addition to money advice, CAB advisers help people people resolve their benefit, housing, legal, discrimination, employment, immigration, consumer and other problems.
If you are in England or Wales you can find your local bureau at http://www.citizensadvice.org.uk/index/getadvice.htm or look in your local telephone directory under C.
If you are in Scotland, please visit www.cas.org.uk
You can also get online CAB advice at www.adviceguide.org.uk
Through its free national telephone service and nine centres, CCCS is able to help people with debt problems wherever they live. This specialist advisory service has already helped thousands of people in the UK by providing counselling on personal budgeting, advice on the wise use of credit and, where appropriate, managing achievable plans to repay debts.
www.cccs.co.uk 0800 138 1111
National Debtline is a national telephone helpline for people with debt problems in England, Wales and Scotland. Their service is free, confidential and independent. National Debtline are committed to answering your call and then discussing your debt problems with you and the options available to you. The specialist advice that they give over the telephone is backed up with written self-help materials which they can send out to you for free. If your circumstances meet certain criteria, they can, if you are interested, assist in setting up a Debt Management Plan for you, again, free of charge.
www.nationaldebtline.co.uk 0808 808 4000
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