Newry Credit Union is warning local people about the hidden costs of moneylenders following the publication of a new survey on household income by the Irish League of Credit Unions. The first survey of its kind shows that 65 per cent of customers fear 2012 will be more difficult than 2011 while 150,000 people are turning to money lenders and pay day loans to meet their bills. Brendan Jackson, general manager of Newry Credit Union said: “The figures confirm that moneylenders will continue to have a hold on many people in the community. The Household Income Tracker shows that a typical loan from a money lender amounts to £300 with an average interest of 95 per cent – leading to a repayment of £586. In addition to the high costs the ILCU survey also shows that 14 per cent of those who take out loans are unable to meet their repayments. The figures stand in stark contrast to the affordable loans available to our members which are up to 15 per cent cheaper than those from the money lenders. Payday companies are currently quoting loans of £400 over 31 days at a cost of £129. The same loan from a Credit Union costs about £4. I would then encourage anyone facing financial difficulties to come to speak to us a Newry Credit Union first.
Newry Reporter
15th February 2012
“