Financial stress and economic uncertainty are feelings that many Britons are all too familiar with. However, this burden often becomes exacerbated during the festive period with many consumers often taking to personal loans to help pay for seasonal celebrations.
The Office of National Statistics (ONS) has revealed that approximately 9 million people in UK increased their borrowing in 2020 because of the financial impact that COVID-19 lockdowns provided them with, and that as a result, 38% of the adult population admitted in December 2020 they would struggle to save for the following months.
Moreover, with the recent removal of the £20 Universal Credit Uplift this Autumn, it is expected that the number of consumers taking to loan companies to afford festivities, will therefore rise exponentially over the upcoming months.
With this in mind, we’ve highlighted five loan providers that are offering helpful services to consumers this winter to help ease the wave of financial winter worries.
Morses Club allow consumers to calculate how much it would cost to borrow over the festive period and with their loan calculator, will indicate the total amount repayable over the course of the loan, before the client decides to go ahead. As well as this, a Morses Club agent will liaise with you face-to-face to help you decide how much you can afford to borrow and over for how long, to ensure that you do not borrow an amount that you are unable to pay back.
Co-op Credit Union Christmas Loans help you to spread the cost of Christmas. The loans are open to both new and existing customers, meaning that anyone can receive financial assistance when planning for Christmas.
Co-op Credit Union Christmas Loan could save you money too; in addition to loan repayments, all members must save a minimum of £10/month, which is taken directly from payroll or by direct debit. This means that not only are consumers of Co-op Credit Union gaining more financial autonomy for the festive months, but they are also helping their future selves by saving too.
Loans At Home provide a personable service, often taking the stresses that come with applying for a loan, out of the process. They have friendly agents who will liaise with their consumers face-to-face to work out how much they can borrow and over what period. The application process is simple and efficient too. Potential patrons of Loans At Home need only fill out a 2 minute application form and one of their agents will arrange a home visit to discuss options within 24 hours.
Just Credit Union offer flexible repayment plans on their loans. Consumers can borrow up to £1,000, with weekly, fortnightly, 4 weekly or monthly repayment methods. They also set up a savings account to help customers manage their money, ensuring that customers deposit a minimum deposit of £5 per week. Just Credit Union also offer a Family Christmas Saver Loan which can be used to deposit child benefit payments to spread the cost of Christmas and build a savings pot for next year.
Pennine Community Credit pride themselves on being the ethical alternative to Pay Day Lenders and credit card companies. The company offer competitive rates between 12.7% APR – 42.6% APR on the decreasing balance – so the interest is always reducing. Alongside this, Pennine also offer free life insurance to their patrons, meaning that in the unfortunate event of your death, your debt would already be paid off.
This blog is for information purposes only and the content is not intended to be a qualified recommendation to engage directly with these companies.
If you’d be interested in discussing how we could help your organisation generate support for loan providers that are offering helpful services to consumers this winter, get in touch today.