The Co-op Credit Union Helps a Young Borrower Escape Pay-Day Lender Debt

Friday 26 January 2024

Research from the Money and Pensions Service found that young people are twice as likely to turn to high interest pay-day lenders than lenders like credit unions.

This is Money spoke with a young member who found herself in spiralling debt after using high-cost payday lenders in her early twenties.  The Co-op Credit Union was able to help Victoria Barry, in a time of financial need. Victoria initially borrowed £20 from a payday lender, but after continuing to use the lender to supplement her monthly income she reached the point where she was paying back almost all her salary to payday lenders every month, and using another loan to live off.

After seeing adverts for the Co-op Credit Union when she worked at Co-op Insurance at the time, Victoria sought help from the credit union as she felt too ashamed to talk to her family. The staff at Co-op were reassuring and helpful, and not judgmental as she feared before seeking help, and provided her with an affordable repayment plan and tools to help her manage her money in the long-term.

Victoria now owns her own home in Greater Manchester and told This is Money: “Looking back at that period of time it was like there was no hope, so I am happy to share my story because if one person like me hears that there is someone out there who can help you who isn’t a loan shark or pay day lender then it’s worth it.”.