BARKING & DAGENHAM, U.K.–An East London Council is partnering with credit unions to provide more affordable loan options amidst cost-of-living crisis.
People who live and work in Barking and Dagenham will now be able to access straightforward hassle-free savings accounts and affordable loans following a collaboration between the Council and Leeds Credit Union (LCU) – Barking and Dagenham Money, known as BD Money.
“Through working with LCU, the Council aims to help residents become more financially secure, keep more money in their pockets and access appropriate services to meet their financial needs and ambitions,” according to a post on ibbd.gov.uk.
A Council-commissioned report from 2020 showed that at least 6,000 households in the borough were borrowing via more than 20,000 subprime loans, totaling more than £9.4 million every year, and paying back £7.3 million in “extortionate interest and fees,” according to the report, which added, “The situation will have only worsened since then, with the current cost of living crisis.”
‘Times are Really Tough’
Councilor Saima Ashraf, deputy leader of Barking and Dagenham Council and cabinet member for community engagement and leadership said in a statement, “Times are really tough right now and we’re doing all we can to support residents. The launch of BD Money couldn’t have come at a better time and brings a more affordable options for our residents when it comes to borrowing.
“Now more than ever as many people up and down the country face the cost-of-living crisis we want to ensure every option is available in terms of the support residents can access – including exploring safe borrowing options instead of high-cost lenders,” Ashraf continued. “We look forward to working with Leeds Credit Union to provide a trusted service to our residents when it comes to savings accounts, loans and much more.”
What Survey Found
LCU is one of the largest credit unions in the U.K. According to the report, LCU recently carried out a survey earlier that revealed 49% of respondents said they saw their financial situation worsening. However, 96% of its members said they would “definitely recommend” the Credit Union to help alleviate these stresses.
“Leeds Credit Union is excited to be working with Barking and Dagenham Council on this initiative to offer our great range of savings and loans to support the residents of the borough,” said CEO Paul Kaye. “We already offer our services to over 35,000 members, helping them access savings accounts to assist with budgeting plus a variety of loans. This could be anything from a small, short-term need of £500 to larger long-term requirements of up to £25,000 for anything from a car repair through to Debt Consolidation and Family Loans. As a mutual organization we offer fair and ethical products for the benefit of all our members.”
Variety of Products to be Offered
Through the partnership, BD Money will offer a variety of savings accounts, including Regular Saver, Christmas Club, Young Saver and Membership Accounts, as well as access to various responsible and affordable loan facilities, the report stated.
For more information on BD Money affordable loan and savings products, plus a range of money support tools and guidance visit www.bdmoney.org.uk.
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