Debt and money

The Money Advice Team

We could all use a little extra help with our finances from time to time. Our team offers free confidential, professional and practical advice on money matters. Team members can negotiate with creditors on your behalf and help you to fill in court forms.

Money Advice Team
Finance Department
Council Offices
211 Main Street
Barrhead

Telephone: (0141) 577 8420
Email:

Office opening hours: Monday to Thursday, 9am to 5pm; Friday, 9am to 4pm

What is a credit union?

A credit union is a profit-sharing, democratically-run, financial co-operative, which offers convenient savings and low interest loans to its members. The Council may offer support to local credit unions by providing advice and information to help them get started and to manage their affairs in a legal and efficient way.

Saving with your credit union

Saving money is a good idea. By putting a little aside on a regular basis you not only have something to look forward to, but also something to fall back on, should the need arise. Saving money with a Credit Union is easy. You are not 'just another customer', but an active member of a growing financial co-operative, which provides security and protection for your savings.

How your credit union shares account works

Once you start saving, your funds build up quickly. By saving regularly you not only help yourself, you also help your community, as your savings provide a loan fund for other Credit Union members. The ethos of the Credit Union is 'What I save today may help you borrow tomorrow'.

You can withdraw your Credit Union savings provided they are not pledged as security for a Loan. However you are encouraged to keep your Credit Union savings intact, so that you keep the Credit Union membership benefits that you have built up.

Borrowing from your credit union

A Credit Union is set up purely to serve its membership, therefore it does not charge high interest on loans. In fact, interest on loans is set by law at not more than 1% per month on the reducing balance (12.68% APR) and repayments are tailored to meet each member’s capabilities. The Credit Union Movement’s policy is 'Truth in Lending' with no hidden costs.

Loans up to the amount of your savings are called secured, and can be repaid over a maximum of 5 years. Loans above your share holdings are called unsecured, and can be repaid over a maximum of 2 years.

  • First loan is twice the value of your shares, up to a maximum of £200

  • First loan must be repaid in full

  • Second loan is twice the value of your shares, up to a maximum of £600

  • Third and subsequent loans are two an a half times the value of your shares, up to a maximum of £2,500

You are encouraged to borrow what you need, but you should also save when you are repaying a loan. This is what is used to make loans to other members.

You can top up your loan twice, once you have paid back 50% of the total. After this you must repay your loan in full.

Advantages of a credit union loan

  • Interest is charged on the reducing balance only

  • Free loan protection insurance is paid by Barrhead Credit Union for eligible members

  • There are no charges

  • Credit Unions are about trust: the money borrowed comes from family and friends

  • Loans are made available to members when a need arises

  • Money saved in the community is kept in the community

  • Your loan application will be dealt with strictly on its own merits and in complete confidence

  • Repayments can be adjusted to meet your own changing circumstances if necessary

Contact

East Renfrewshire Credit Union
116 Main Street
Barrhead
G78 1SG

Telephone: (0141) 881 1353
Website: East Renfrewshire Credit Union