THE dramatic increase in the numbers of people joining Blackpool's biggest credit union has led to a call for people to become involved in helping to run it.
Tower View Credit Union has gone from strength to strength over the last few months and is gaining new members almost daily.
A social evening for existing members of credit unions, and people who are interested in knowing more about them, was held on Tuesday at the Town Hall.
The aim of the evening was for people who are already volunteering with a credit union to offer first-hand experience and encouragement to those who are interested in getting involved.
Ron Batters, chairman of Tower View Credit Union, said: "It was a great opportunity for people to come along and learn more about the credit union and about how to join. We are in the process of creating a single credit union for Blackpool and need people to spare an hour or two a week to help out." Mr Batters said that training would be provided for those who were interested and the tasks were really easy to undertake. "Many people assume that you will need a degree in economics to run a credit union but that couldn't be further from the truth. Credit unions are set up by local people and run by local people and basic reading and adding skills are all that is required," he said.
Credit Unions have provided a valuable resource for people who have been unable to get loans with repayments they could afford. However, the credit union movement is also targeting people who are considered "well off" to join because the more people who are in it the more money there is to loan to people.
With interest rates of 1 per cent monthly, credit unions compare favourably with many high street lenders.
The Government is also to offer new assistance and support to credit unions under the National Strategy for Neighbourhood Renewal and the establishment of a Central Services Organisation.
A credit union is owned and operated by its members. For a one-off fee of £1.50 anyone in a given area can join. A member can then save as little as 50p per week and after a 13-week period of consistent saving they may then apply for a loan. This loan can be up to double a member's savings, and the interest is charged at 1 per cent of their monthly outstanding balance. Members are encouraged to keep saving a minimum of £1 per week while they are repaying their loan.
When a member takes out a loan their savings are "frozen". However, once the loan is repaid then a member can withdraw their savings, which have increased while paying off the loan.
Ron Batters, who began Tower View Credit Union on Queen's Park, said: "Many of the local residents were using loan sharks, and I began the credit union as a way of halting this practice. People can have a secure financial life, they can save and have cheap loans and so improve their quality of life. Once the loan is paid off, people still have their savings."
For more details call Ron at the credit union office on 394050 or Michaela at the Community Development Unit on 477272.
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