Credit Unions are vital to communities
Credit Unions have become integral parts of our communities.
Traditionally, credit unions have been small, non-profit financial organisations set up by members with something in common to benefit their community.
Many credit unions offer products online and most have some form of commercial premises.
There are now about 500 credit unions in the UK, and about a million Brits are members - this number’s increasing every day.
They’re there to provide a financial community.
The idea is that members mutually benefit as there’s no profit for thirdparty shareholders.
This can often mean helping those who can’t get access to ordinary bank products; a lifeline in less well-off communities for folks grappling with their finances. Plus, they can be a welcome alternative to payday loans or doorstep lending.
And in South Lanarkshire the Youth Council (SLYC) and Lanarkshire Credit Union have established the UK’s first ‘credit union hub’ specifically for young people.
Numerous schools in East Kilbride have set up credit unions and East Kilbride Credit Union has seen a staggering rise in the number of members in recent years.
South Lanarkshire Council’s Education Committee members fully endorsed the unique project and its aim of improving the financial literacy of 16-24 year olds, while breaking down the barriers that often prevent young people from accessing what is a predominantly older generation service.
Following on from a successful entry to the Money for Life Challenge in 2014 with the Valuable Information Penny savers (VIPs) project, SLYC members sought to learn more from high street banks and financial institutions on how they lend money, specifically to young people.
Lanarkshire Credit Union was quick to embrace the idea and invited SLYC members to make suggestions which resulted in the eventual establishment of the hub.
SLYC Members have also signed up to volunteer in the credit union to build their skills and knowledge which they hope to pass on to peers thorough workshops, open days and other community events.
Councillor Jean McKeown, Chair of the Education Resources Committee, said: “The aim of the hub is to positively impact on decisions made by young people by giving them the tools to make reasoned decisions about financial management, understanding the potential impact of borrowing, or getting into an unmanageable cycle of debt.”
Credit unions aim to help you take control of your money by encouraging you to save what you can, and borrow only what you can afford to repay. In essence, they’re savings and loan co-operatives, where the members pool their savings to lend to one another.