The last few years have brought about considerable financial pressures for many people. It is no secret that we are now facing the most significant cost-of-living crisis in a generation. This crisis is not just a talking point; it is having an obvious impact on the financial wellbeing of families across the UK. Everyone has faced challenges due to the steep inflation of goods and services. It is estimated that half of adults are feeling more anxious because of the rising cost of living. Household finances have been stretched thin as the UK grapples with this crisis, essential expenses like gas, electricity, and water are hitting hardest, with vulnerable individuals and families forced to make heartbreaking decisions between either heating their homes or putting food on the table.
In the face of these challenges, credit unions like Wave Community Bank are emerging as pillars of support for individuals and families. A credit union is a member-owned not-for-profit cooperative financial institution. By expanding their services and leveraging technology to reach a wider audience, credit unions aim to assist more people and deter reliance on services like payday loans, ‘Buy Now Pay Later’ schemes, or illegal money lenders.
What distinguishes credit unions is their personalised approach to finances. You will always find someone ready to discuss your financial situation, without the burden of exorbitant interest rates. Lower-cost loans are helpful, but credit unions offer more than just financial assistance. With accessible support and guidance, those hardest hit by the crisis need to engage with their local credit union now more than ever.
Awareness and understanding of credit unions remains a challenge, but progress is being made. They are increasingly recognised now as ethical alternatives to payday lenders, especially with the closure of banks and Post Office branches, particularly in rural areas.
Membership and lending in credit unions have surged in response to the cost-of-living crisis. As this crisis persists, credit unions are playing a pivotal role in enhancing financial wellbeing. They are fostering financial resilience in households and communities nationwide, empowering consumers to manage their finances effectively and ethically.
In these challenging times, credit unions continue to serve communities and employers by offering ethical and responsible products and services. The ethos of “people helping people” remains the cornerstone of the credit union movement.
So, if you are feeling the strain of the current cost of living crisis, do not suffer in silence. Reach out to your local credit union for assistance. They can help you become financially resilient by facilitating saving, budgeting, debt consolidation, and overall financial management.
While saving may seem daunting amidst day-to-day expenses, it is essential to build a safety net for peace of mind. Times of hardship underscore the importance of having an emergency fund to fall back on, reducing reliance on loans and debt to manage unexpected bills.
Credit unions not only offer advice and loan services to navigate these tough times but also promote a savings culture to safeguard your financial wellbeing in the future. Together, let us embrace saving as a fundamental practice, ensuring we are better equipped to weather financial storms and secure our financial futures.
If you live or work within East Sussex and Kent, you can join Wave Community Bank. Find out more about our services by visiting https://wavecb.org.uk/.
If you live or work within another region then you can find your local credit union here: https://www.findyourcreditunion.co.uk/.