16 October 2018
Life’s unexpected emergencies, like fixing your car or buying a new washing machine, can be costly. Saving money for a ‘rainy day’ is really important as without it expensive ‘pay day’ loans may seem like the only option available. Often, these loans become unmanageable and quickly create large amounts of debt.
We think there’s a more affordable, secure and reliable alternative for both savings and loans. That’s why we, along with 8 other housing associations in the South West, have partnered with local Credit Union, Westcountry Savings & Loans (WSL), to let you know that you have another choice.
What is WSL?
WSL is a not-for-profit Credit Union – a cooperative whose members can borrow from pooled deposits at low interest rates. By joining as a member of the Credit Union, you can deposit savings for a rainy day or take out a loan. All savings are protected by the Financial Services Compensation Scheme.
Why should I consider WSL?
Expensive pay day loans or ‘Rent-to-Own’ deals can appear to be a great solution to life’s emergency costs. Your washing machine breaks down? Rent a brand new washing machine from a Rent-to-Own company for ‘only’ £5 a week!
But, in the long term, these schemes can cost more than double what you need to pay and may even cause you to fall into debt.
For example, a tumble dryer from a Rent-to-Own company costs £780 over three years with interest, compulsory insurance and service cover. The same model bought outright from a high street retailer with a three year credit union loan from WSL would cost only £377.69* – less than half of the Rent-to-Own cost.
Unlike many pay day lenders or Rent-to-Own companies, there are also no arrangement fees or early redemption penalties if you wish to pay off a WSL loan early. All loan applications will be considered and WSL will normally give a decision within 48 hours.
*Interest rates vary between 4.9% APR and 42.6% APR depending on credit rating, amount borrowed and whether you are an existing saver with WSL.
How can I join?
To find out more about becoming a member, taking out a loan or saving with WSL, get in touch with them directly:
- Visit www.westcountry.org.uk/cornerstone
- Email firstname.lastname@example.org
- Call 0800 304 7041 (opening hours 9am – 5pm)