Credit Union loans

Summary

Credit unions charge low rates of interest - no more than 3% each month. You can work out how much a credit union loan would cost you by using the loan calculator on the Association of British Credit Unions (ABCUL) website at www.abcul.coop. Credit union loans usually work out cheaper than home credit or payday loans. For more information about home credit, see Home credit (doorstep loans). If you don't repay a credit union loan, the credit union might cancel your membership and take you to court. Check what they can do to get their money back. If you are struggling to pay a credit union loan or other debt, you can get help from your nearest Citizens Advice. You can get information about credit unions from the Association of British Credit Unions (ABCUL) website at www.findyourcreditunion.co.uk or the ACE Credit Union Services website at www.acecus.org. In Scotland, you can get information about credit unions by checking the website of the Scottish League of Credit Unions members at www.scottishcu.org. Contact the Credit Union – they should help you deal with your repayments. For example they might offer to: * reduce or pause your payments for a limited time * stop adding interest.

Key information

• reduce or pause your payments for a limited time
• stop adding interest to the loan for a limited time
• help you work out a plan to pay what you owe
• Credit unions charge low rates of interest - no more than 3% each month. You can work out how much a credit union loan would cost you by using the loan calculator on the Association of British Credit Unions (ABCUL) website at www.abcul.coop.
• Credit union loans usually work out cheaper than home credit or payday loans.
• For more information about home credit, see Home credit (doorstep loans).
• If you don't repay a credit union loan, the credit union might cancel your membership and take you to court. Check what they can do to get their money back.
• If you are struggling to pay a credit union loan or other debt, you can get help from your nearest Citizens Advice.
• You can get information about credit unions from the Association of British Credit Unions (ABCUL) website at www.findyourcreditunion.co.uk or the ACE Credit Union Services website at www.acecus.org.
• In Scotland, you can get information about credit unions by checking the website of the Scottish League of Credit Unions members at www.scottishcu.org.
• Contact the Credit Union – they should help you deal with your repayments. For example they might offer to:
• The Credit Union should give you time to consider your options and get help with your debts.

Practical guidance

• Source: Credit Union loans

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