Why is a Credit Union loan better than using Credit or Store Cards?


News story

Are you planning on using Credit Cards or Store Cards to pay for a lot of the costs associated with Christmas? You could end up paying lots of interest and racking up debts that are a struggle to pay off. Credit cards or Store cards are one of the most expensive forms of financing, with interest rates in the double digits unless you have credit good enough for a 0% promotional offer.

On your credit card’s payment due date, you’re obligated to make a minimum monthly payment — generally around 1% to 3% of the balance — but you’ll need to pay it off in full to avoid accruing interest. Interest is calculated based on the average daily balance during the month, not the ending balance. Credit card debt is “revolving” debt. Carrying a balance for too long can also easily add 50% to everything you buy and leave you with less money to work with next year.

That is why at Eastern Savings & Loans we are always looking for ways to help our members save money. If you are looking to borrow between £500 and £2,000 (42.6% APR on the reducing balance) to help you manage the cost of the festive season, our Christmas Loan is designed to give you support when you need it. By avoiding short term lenders or store or credit cards you will save yourself money and keep repayments at an affordable level.

Repayments are flexible, you can repay weekly, fortnightly or monthly. You can make loan repayments and save for next year all in one easy payment. Once you become a member you can apply for a loan the very same day. You do not need to have savings before you take out a loan. The loan application form is easy to fill out, and you’ll get a decision in 3-4 working days.

Everyone can benefit from credit union membership which includes, easy access savings, online loan applications, free life and loan insurance * telephone banking and online account access to name just a few. As a cooperative all our members share in our profits, and can be part of the governance of the Credit Union. See our website for more details on the benefits of Credit Union membership. www.eslcu.co.uk
*subject to status