Family debt serviced by Lancashire credit union set to hit record highs in 2022
And he anticipates even more demand for debt consolidation loans in the new year following the increase in Christmas spending.
The community-driven nonprofit has seen a steady increase in the number of debt consolidation loans over the past year, whereby clients consolidate multiple debts from different sources into one monthly payment.
CLEVR has made 117 debt consolidation loans in the past year, with a total value of £ 527,000. This represents an increase of £ 85,000 from the 77 loans granted in 2020 valued at £ 343,000.
CLEVR Money co-manager Anthony Brookes believes the records will drop 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 a priority as people look to fix their finances after Christmas. Our own numbers, this Christmas spectacle, members have saved more for the holiday season, while our Christmas loans have also increased in value, indicating that people are spending more this year than last year.
“This trend will be reflected in the community at large and, for those who haven’t borrowed from a credit union, their repayments could start causing sleepless nights in the New Year.
“People come to us with debt from many sources like credit cards, store cards, installments and payday loans. They often say that they wish they had taken out a fair interest rate loan, but at least we can help them once they get in touch.
“The biggest obstacle for people who contact us is that they assume that we won’t be able to help them because they have already been turned down elsewhere, or that they are embarrassed or too scared to put it all on the line. table.
“All I can say is that 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.
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