Credit unions are becoming more and more popular as hard-up families seek ways of better managing their finances. Joanna Morris investigates

‘WE are here for everybody.

There is no profile for a credit union member; people come from all walks of life,” says Jo Price, Darlington Credit Union’s office manager.

Credit unions and their volunteers work at the heart of local communities to help millions of people across the UK manage their finances, not only in times of crisis, but in times of plenty.

The austere times means many credit unions – offering free financial advice, savings accounts and affordable loans – are seeing a rise in members struggling to make ends meet.

Less predictably, however, they are also seeing an influx of wealthier members hoping to support their work with large investments.

In Darlington, council leader Bill Dixon is a member of his local credit union, proving the point that the non-profit organisations are for everyone.

Ms Price said: “We need to show people that this is a community thing; it is about people coming together. Without savers, we cannot lend.

“Our members cover the whole spectrum of society. People think we only cater for the financially excluded and those who are struggling, but that is not true.

“We do help those people, but we also have people who save with us because we give a better return, because they do not like banks or simply to support what we are doing.”

The team is urging the local community to join them – the more members they have, the more people they can help.

Their volunteers already run 22 collection points across the town, where members can leave savings and apply for loans.

ACOLLECTION point at a food bank helps the needy get back on their feet, according to the Reverend Sheilagh Williamson, of St Columba’s Church, Darlington.

She said: “We have people coming in because they need food parcels and it seemed like a good idea to have a credit union here at the same time.

“People are saving for the first time because they are able to save as little as 50p a week, which they would not really do at a bank.

“It is great to see people saving and getting affordable loans when otherwise they would probably be turning to loan sharks or payday loans.”

The team believes the adage that prevention is better than cure and as such, is working with the Morrison Trust charity to teach people about finance.

As part of the Money Works project, they offer free financial health checks, budget planning and financial skills workshops.

Financial inclusion worker Simone Murray said: “We live in such a competitive and consumerist society where there is a lot of pressure to compete lifestyle-wise.

“Credit can seem so cheap, but it is often not, and education is the key. We do not want to do things for people; it is about education and empowerment.

“Financial education is crucial to taking people out of the cycle of poverty and giving them more control.

“We want to turn people away from crisis money lenders and teach them that there are other positive pathways.

“We are trying to build self-esteem and give people confidence to build a better future for themselves, one where they could do something as simple as save for Christmas or even plan for the birth of a baby.”

  • To join Darlington Credit Union or for more information about its services, visit darlingtoncreditunion.co.uk or call 01325-520005.
  • The Northern Echo is offering free advertising for accredited credit unions. Call Sam Chisholm on 01325-381313.