Data Shows Credit Unions Lending in High Volume During Cost-of-Living Crisis

Friday 26 January 2024

ABCUL surveyed its largest members this week, which represent the majority of Britain’s largest credit unions and the respondents stated that loans are increasing on the back of the cost-of-living crisis.

This week, ITV News visited Enterprise Credit Union who showcased the vital support it provides for its members on a day-to-day basis.  ECU have seen a 37% increase in value of loans in the last six months equating to a value of 10m in loans.

Speaking to ITV, CEO of ECU, Karen Bennett said: “What we are finding now is that they’re calling on us and saying ‘can I have my Christmas loan earlier because I need money to survive, you know, through this cost of living crisis’”.

One member, Charlie-Ann Guy featured in the news segment about falling into debt as her outgoings grew. She told ITV she got into debt as her outgoings grew, “Everything’s gone up, hasn’t it – so everyone’s struggling now. Gas and Electric has gone through the roof – you’re having to keep up with payments and payments are not coming in quick enough to be able to cover the outgoings so you get yourself into more trouble.”

She took out a loan from the Enterprise Credit Union in Liverpool and said: “The credit union just managed to give me that little bit of a boost to get through that.”

Interest rates are the highest for more than a decade, the cost of living is rising more than for 40 years – and as the need for help grows, the GB credit union sector are now aiming to get bigger too.