Debt Advice: How You Can Get Support

24th February 2023 11:09 am Comments Off

Debt Advice: How You Can Get Support

As the cost of living crisis continues to increase the financial pressure facing many households in the UK, it’s never been more important to keep a close eye on your money so that you can recognise quickly if you have debt issues. If you do, it’s also important to know where to turn for help, advice and debt support.

So how can you tell if you’re at risk of getting into debt and what can you do about it? Read on to find out.

How to recognise you have debt issues

Anyone can be affected by debt, which can creep up suddenly and turn a manageable financial situation into an out of control problem that can result in sleepless nights and feelings of embarrassment and shame.

Luckily, it is possible to spot the signs of impending financial difficulties and stop them before they become a serious issue. Read the following statements and see if any apply to you. If they do, this may be an indication that you have debt issues and should seek help and advice to help you manage them.

I can’t put a figure on how much I owe
I rely on credit to cover my living costs
The amount I owe is rising
I’ve been contacted by a debt collection agency
I’m making minimum payments
There are arguments in my house about money
I sometimes hide purchases from my partner
My credit cards are near the limit
I have no savings left
I skip paying bills some months or pay them late
I’ve started to use payday loans
My debt worries interfere with my job and/or home life
I can’t sleep because I’m worry about my finances
I haven’t got any emergency savings
I don’t open my bills when they arrive

How and where to get debt advice and support

If you think you would benefit from help and advice, there are several organisations that can help.

Citizens Advice has lots of information on its website, with advice on everything from dealing with urgent debts and/or arrears to reducing your outgoings. Click here to find out more.

MoneySavingExpert also has a wealth of information re debt problems and the help that is available on its website.

Closer to home, our Money and Budgeting Service (MABS) works in partnership with Housing Leeds to help tenants who are struggling to budget their money and pay their bills. We can help you arrange affordable payment plans to cover your arrears and look at switching providers if cheaper alternatives are available. To get in touch, click here.

Take back control of your money with an LCU debt consolidation loan

A cursory glance at almost any British news outlet will give you an indication of the financial difficulties people in the UK currently face, with debt a common issue in many households. While this is naturally a cause for concern, it’s important to remember that financial help from reputable lenders is available to anyone who needs it.

At Leeds Credit Union, we don’t charge any set-up fees for our debt consolidation loans, nor do we charge any penalties for early loan repayments.

Debt consolidation loans are loans that an individual takes out to pay off their existing debts. The individual uses the money from the debt consolidation loan to pay off the people or companies to whom they are in debt, then repays the loan in monthly instalments.

Debt consolidation loans can be used to pay off different types of debt, such as credit cards, overdrafts, store cards or personal loans.

Taking out a debt consolidation loan is an effective way of taking back control of your finances as it allows you to immediately pay off all your debts and leaves you responsible for just one repayment each month.

When you have several lenders to repay each month, it can be easy to forget to make a payment, especially if the repayments are for different amounts and due on different dates. Needless to say, this makes budgeting and general money management much more difficult.

Because bigger loans often come with lower interest rates, debt consolidation loans can also lower your monthly repayment amount, reducing your outgoings. The repayments can also be spread over a period of time that is more suitable for you, which could potentially lower your monthly repayments too.

For more information or to apply for a loan, click here.

Case Study – Help with Outstanding Debts

30th January 2023 12:54 pm Comments Off

Case Study – Help with Outstanding Debts

Many people join Leeds Credit Union (LCU) because they need help dealing with debt. Here’s the story of one of our members who used our services to ensure they and their partner never needed to deal with unscrupulous doorstep lenders again.

“I have been an LCU member for three years and my main reason for joining was for the personal loan and to look into savings accounts. My partner and I were short on cash at the time so we applied for a loan to repay outstanding debts and the following day we were accepted. I was shocked; I did not think that we would be accepted.

“Being accepted for various loans over the years has been life-saving”

“Up until joining, we had religiously been using doorstep lenders for loans, but we have stopped using them now and only use LCU for our financial needs instead. The loans are much more affordable, faster and more reliable. It is all made so easy and has reduced our monthly outgoings; I’d be lost without it.

“Being accepted for various loans over the years has been life-saving. The money has gone towards a holiday, household goods including a new fridge, cooker, sofa and bed, and it also helps if I’m short on bills and need a top-up. The customer service is always fantastic, and the staff are so polite and helpful that they feel like family. I think I now know them all by name and vice versa!

“Since joining I have never looked back. LCU has helped my partner and I out of some difficult financial situations. My mum is now also a member and no longer uses doorstep lenders either. We are all in a much better place now and would never go anywhere else so thank you!”

A positive difference

We love making a positive difference to our members by helping them reduce their monthly outgoings and pay off their loans – or credit with higher rates of interest – so it was great to read these kind words.Our affordable loans are available to all Leeds Credit Union members. For more information and to apply now click here.

How To Ease Your Financial Burden in 2023

16th January 2023 6:15 pm Comments Off

How To Ease Your Financial Burden in 2023

When you think of new year’s resolutions or plans for the coming months, the first things that pop into most people’s heads usually include getting fit, drinking less alcohol or taking up a new hobby. But what about financial planning?

Whether you’re determined to pay off your debts or serious about saving, making financial plans is a great idea. And with 2023 likely to be another financially challenging year, sticking to them could be the key to ensuring the next 12 months are prosperous.

Of course, making plans and sticking to them are two very different things but if you’re committed to achieving yours, here are a few we think would benefit everyone.

Deal with debt

Thanks to credit cards and easy payment options, debt is easy to get into but much harder to get out of, especially when you take into account the regular interest payments that come with it.

If you can, use any surplus cash to pay off your debts asap, prioritising any that could jeopardise your accommodation or heating, or land you in legal trouble if you fail to keep up repayments, then moving onto the most expensive and working your way down to the least costly.

This is something we could also help you with via our debt consolidation loans.

Start saving

Although it’s widely recommended that everyone should have between three to six months worth of earnings set aside in case of an emergency, for many people this is simply impossible.

However, there’s no denying that regularly saving as much as you can afford – even if it’s only a few pounds per week – is a great idea, so make sure you have an active savings account. Although the interest rates they’ve been paying out in recent years has been minimal, rates are on the up in 2023, making them an important asset again.

The best way to start saving is to work out what you’re spending money on, identify what you can do without and save that money instead. Take a look at what subscriptions you have, whether it’s Netflix, Amazon or ‘bolt-ons’ related to your mobile phone and if you can live without them, cancel them and start saving what you would have spent.

Set a budget

Making a budget is one of the simplest and most effective ways of keeping tabs on your finances, so sit down with your bank statements and work out how much you need to spend on essentials (your rent/mortgage, utility bills and groceries), how much you can afford to spend on hobbies/treats and how much you should therefore be able to save each month.

By ensuring you always know how much money you have coming in and going out, you can identify potentially expensive periods ahead of time and take proactive steps to ensure you have sufficient funds set aside to cover the cost without getting into more debt.

If you don’t already make regular budgets, now is the time to start. Lots of budget planners are available for free online to help you get started (this one from Money Saving Expert is great) and our Money and Budgeting Service (MABS) is available to help tenants of Housing Leeds create realistic budgets and ensure their bills are paid on time.

Shop around

Although the cost of energy is currently high regardless of supplier, it’s worth shopping around for cheaper deals on your energy bills and, if you can find any, save the difference.

Similarly, shopping around for cheaper groceries, broadband and mobile phone providers and fuel prices are also easy wins.

Improve your 2023 finances with Leeds Credit Union

At Leeds Credit Union, we provide straightforward and affordable loans and savings accounts to our members, helping them take back control of their money and achieve financial security.

If you’re interested in becoming our newest member, click here.

LCU Makes £1m Available to Help its Members’ Finances

11th January 2023 10:38 am Comments Off

Leeds Credit Union Makes £1m Available to Help its Members’ Finances

Here at Leeds Credit Union we have begun 2023 by launching a new initiative to help our members consolidate their debts and lower their monthly outgoings.

By making £1 million available to our 37,000+ members across Leeds, Wakefield, Harrogate Craven and Barking & Dagenham, plus residents of associated housing associations and select employers, we hope to help them tackle the cost of living crisis by stopping them overpaying on interest for store cards, overdrafts, credit cards and high interest loans.

We have taken the decision in response to feedback from our members in the run-up to the recent festive period, who revealed that 48% of them were unsure how they would afford Christmas, raising concerns many would turn to high interest loans or rack up credit card debt.

Stephen Porter, our Head of Member Experience, said: “With the cost of living crisis continuing to affect communities across the region, many households are falling into debt, often to multiple lenders.

“Making a significant amount of money available to our members so they can consolidate their debts makes it easier for them to pay off their existing debts in one easy, monthly payment. Because we offer lower interest rates than most other lenders, our debt consolidation package also helps members reduce their interest payments, further improving their financial situation.

“To try and make 2023 less financially stressful for our members, we’ve also launched this year’s Christmas Club saving account. This means they can start saving for Christmas 2023 today, gradually building up a pot throughout the year rather than having to try and find money in a mad rush come December. Savings will be available from November 1st.”

Here are two key examples of how we’ve already helped some of our members:

A member came to us wanting to bring all of their debts into one affordable monthly repayment. They were spending £417 in monthly repayments across a loan, a credit card and a catalogue. Through a consolidation loan using our payroll scheme, the member has now simplified this all into one monthly repayment of just £225/month. It’s also worth nothing that the credit card alone was almost £7,000 at 23.9% APR whereas our loan is at 6.1% APR.
Another member wanted to consolidate an overdraft and a loan that they had with their primary bank. We provided a loan at 7.1% APR versus the 13.9% they had, this will end up saving out member around £4,000 in interest over the next five years on their £23K loan.

To apply for a debt consolidation loan, members can visit one of our highstreet branches or head to our website here.

Debt Consolidation at Christmas

18th December 2022 12:44 pm Comments Off

Debt Consolidation at Christmas

As the cost of living crisis continues and with inflation currently sitting at 10.7%, the financial pressure facing many households in the UK feels like it’s increasing all the time, and that’s before you consider the added pressure of buying expensive Christmas presents for family and friends.

Factor in that the average UK adult has £3,891 of unsecured debt and the average UK household has £65,618 of total debt and it all adds up to a big squeeze on the nation’s wallets.

With financial problems mounting and consumer confidence plummeting, it’s never been more important for people to keep a close eye on their debts, make sure they don’t increase significantly over Christmas and make sure they’re properly managed.

One of the most effective ways of doing so is with a debt consolidation loan. But what exactly is one? Let’s find out.

What is a debt consolidation loan?

A debt consolidation loan is a type of loan that an individual takes out to pay off their existing debts. The individual uses the money from the debt consolidation loan to pay off the people or companies to whom they are in debt, then repays the loan in monthly instalments.

Debt consolidation loans can be used to pay off different types of debt, such as credit cards, overdrafts, store cards or personal loans.

What are the benefits of debt consolidation loans?

Take control of your debt with a Leeds Credit Union debt consolidation loan

A cursory glance at almost any British news outlet will give you an indication of the financial difficulties people in the UK currently face. While this is naturally a cause for concern, it’s important to remember that financial help from reputable lenders is available to anyone who needs it.

At Leeds Credit Union, we don’t charge any set-up fees for our debt consolidation loans, nor do we charge any penalties for early loan repayments. For more information or to apply for a loan, click here.

Tag Archive: Debt Consolidation