'We're here to help' Leeds Credit Union offers lifeline support for families this Christmas
Leeds Credit Union has launched a lifeline to families this Christmas to help tackle the rising cost of living.
The not-for-profit lender aims to support the city’s residents with a £20m campaign to offer affordable and flexible loans ranging from £250 to £25,000, available up until Christmas.
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The union estimates that a third of their lending throughout the year takes place in the run-up to Christmas.
James Brown, chief executive officer of Leeds Credit Union said: “At this time of year your heating bill goes up because it's getting a little bit colder outside and there’s more pressure on some people, especially for families as kids get excited for toys under the tree.
“When people don’t necessarily have savings, they can come and get a small loan from us.”
Alongside the Christmas campaign, Leeds Credit Union have worked to limit festive season financial pressure through Christmas savings accounts where members can deposit money throughout the year into their account but only make withdrawals from November.
The financial co-operative hopes that their Christmas campaign encourages people to avoid borrowing money from doorstep lenders and unregulated loan sharks with "astronomical" interest rates.
James said: “Once you go down that path, it becomes a never ending life cycle.
“You could borrow £50 from them and suddenly find that you accidentally owe hundreds of pounds - how is someone actually going to ever pay that back?”
When a member applies for a loan from the Leeds Credit Union, the organisation will assess their eligibility through factors such as credit score and how much they wish to borrow.
For James, it is a key priority that Leeds Credit Union takes a “humane approach” to lending. When a local resident visits a branch to discuss their financial options, they should not only feel confident they can avoid debt but also leave with “dignity, stability, and peace of mind.”
James said: “We are here for the journey, not the transaction.”
“We don't consider ourselves just as a machine really for savings and spending money - It's about how we can support people within that sort of local community.”
To find out more about Leeds Credit Union’s services and gain advice on how to manage money, Leeds residents can visit the Leeds Credit Union website, or one of their branches on Armley Road, Dewsbury Road, and in the Merrion Centre.
The Credit Union also runs outreach clinics once a week in Wakefield, Seacroft, Compton, and Pontefract, to provide face-to-face financial education.