Credit Unions

[Rosylee1976]

I have been wondering about credit unions and what possible benefits they might offer to people. Does anyone belong to one and if so, what difference has it made to you?

I have a small store card balance (lass than 500 - yes this is small if you knew what else I owed!!) that despite paying the mimimum payment and not shopping on it for like 2 years, the balance has never moved very much. I can't really pay more as I have a mountain of other debt, but I was wondering if I, in a few months of saving with a CU, could get a loan for the same amount as what I owe so that I can pay them off. I am thinking that the interest rate must be much lower than a store card and so I could rather pay the CU what I am paying the store card and the debt should reduce?

Am I making sense or have I got it all wrong. Would appreciate a few replies.

Thanks

You sound perfect for Credit Union. Best to find your local & check their own T+C.

Absolutely a sound idea. CU loans are much lower interest. Go for it.

I am a member of a CU and they are fan-bloomin'-tastic. Their loans have helped us buy our car a couple of times. We got the loan, paid it off and then it has paid for the next car and over the years we have managed to get a better car because of the loan and the money from the old car.

Also along side this as they put a little aside into your savings I have built up a little bit of savings which I wouldn't have.

Credit Unions are great, its a financial cooperative, they are not out to make a profit for shareholders. I belong to one through work and it has paid for cars and house repairs over the years. I am trying to save in it now to pay off my overdraft and bank loan, but its become too easy to take the money out, so I keep withdrawing money instead of saving! But thats the plan. It would definitely be worth you doing it to pay off the store card, then when you have paid off the cu loan you will also have a bit of savings, and the possibility to pay off another debt. I helped set up our work place one years ago, it has long since gone more professional with paid workers and amalgamated with others but it is probably the best financial thing I've done. Mine comes straight out my wage at source so I don't even think about it, but my partner is in a different community one. I have joined their christmas savers club too.

Thanks for this. It is really helpful. I will certainly be looking into this. It may take a while to build up some savings but hopefully I will be able to do so soon