Credit unions are community savings and loan cooperatives. Credit union are owned and managed by their members. They’re run on a not-for-profit basis.
Members save money which gets used to offer loans. The loan interest rates are typically good value.
Money owed to a credit union has no special status. It gets included as a debt if you use a formal debt solution.
You cannot leave a credit union debt out of your trust deed.
If you have savings at the credit union, this reduces the debt owed.
Your debt might be repaid via your employer’s payroll.
If you sign a trust deed, your trustee will intervene. Repayment cannot continue.
Because they charge low interest, credit unions get hit hard by trust deeds. It’s difficult for them to earn back the money written-off.
This may make them reluctant to accept your proposals. They might vote against your trust deed becoming protected.
Acting alone, they may be unable to prevent protection. This depends upon the other debts you have. Many people with credit union debts get protected trust deeds.
You can save modestly during your Scottish trust deed. This is important. You’ll need cash for irregular costs like car and home repairs.
A credit union is a good place to save. This may help you access affordable credit in the future.
You’ll be able to save more after getting discharged. This fund helps to make you financially resilient. It will help you avoid debt problems in the future.
Credit union membership offers affordable credit. Your credit rating will be poor, so other credit sources will be expensive.
7% of Scottish residents are credit union members. Some credit unions require you to live in a certain area. Others require you to do a certain type of work.
You can find a suitable credit union to use at findyourcreditunion.co.uk.
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