Case Studies
Saving with Cornish Community Banking
Mr & Mrs X were doorstep lender users who had never managed to save.
Through a careful analysis of their budget they were able to save a regular small amount each week which has quickly built up. They have also obtained two small (secured) loans from the credit union rather than topping up their doorstep loan which would have been their usual course of action.
They have never missed a single visit to the collection point to pay in their savings and loan and are now on target not only to pay off their doorstep loan completely by the end of the year but will also have enough to see them through Christmas without resorting to credit. They state that “joining the credit union was the best thing they have ever done” and have even recruited some friends to join. They have also vowed to save the money they are currently using to pay off their doorstep lender once their account is clear.
Borrowing from Cornish Community Banking
Mr & Mrs P approached the credit union to obtain a loan as Mr P had recently lost his job. A quick budget analysis showed that the couple were badly in debt and a loan was not in their interests. The outreach worker arranged an appointment with the CAB, helped the couple sort their paperwork and accompanied them at their request to their initial CAB appointment.
Mr & Mrs P now have their debts under control. Although not currently credit union members they keep in regular contact with the outreach worker and will join when Mr P finds employment. (Not tenants of PHA)
Miss J approached the credit union as she needed to decorate her flat following completion of the decent homes refurbishment. She had received a quote from a doorstep lender but had heard that the credit union was better. Miss J received a loan to help her with decorating materials which she is repaying regularly as well as saving a small amount per week. She has recently returned to the credit union for a further small loan to replace her fridge.
Mr B approached the outreach worker to obtain a small loan from the credit union. A financial analysis showed that Mr B was not in a position to repay a loan, however this was due to poor budgeting skills. Mr B had also been an ardent doorstep lender user since 1986 and really did not understand how much interest he was paying. Mr B had a number of sessions with the outreach worker to understand and manage his budget better, joined the credit union and manages to regularly save a small amount every week. He now understands how much the doorstep loan is costing him and is determined never to obtain another loan from this source. He proudly brings in his repayment book every week to show the outreach worker that he is not topping up the loan amount. The outreach worker has also assisted Mr F with other issues and Mr F regularly brings in paperwork he does not understand so the outreach worker can read this through with him and refer him to other agencies if necessary.
Opening a Credit Union Current Account