Family debt dealt with by a Lancashire credit union is predicted to hit record levels in 2022
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And the it is anticipating even more demand for debt consolidation loans in the new year following increases in Christmas spending.
The not-for-profit community focused organisation, has seen a steady increase in the number of debt consolidation loans over the last year, whereby customers roll multiple debts from different sources into one monthly payment.
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Hide AdCLEVR has provided 117 debt consolidation loans over the last year, for a total value of £527,000. This is up £85,000 from the 77 loans handed out in 2020 valuing £343,000.
CLEVR Money co-manager Anthony Brookes believes records will tumble in the new year with the credit union helping more people than ever with debt consolidation loans.
He said: “I expect debt consolidation to be high on the agenda as people look to sort out their finances after Christmas. Our own figures this Christmas show members have saved more for the festive season, while our Christmas loans are also up in value, indicating people are spending more this year than last.
"This trend will be reflected in the wider community and, for those who haven’t borrowed from a credit union, their repayments may start to cause sleepless nights in the new year.
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Hide Ad“People come to us with debts from numerous sources like credit card, store cards, shop instalment, and payday loans. They often say they wish they’d taken a fair interest credit union loan in the first place, but at least we can help them once they do get in touch.
“The biggest barrier to people contacting us is they assume we won’t be able to help them because they’ve already been turned down elsewhere, or they are embarrassed or too scared to lay it all out on the table.
"All I can say is that this is exactly what we are here for, to help people access fair credit, avoid high interest rates, sleepless nights and bad debt. We helped 117 people pay off their debts last year, and we can help many more in 2022.”