Page 21 - link magazine

WELFARE RIGHTS 21

CREDIT UNIONS COPING WITH CHANGES IN THE SYSTEM
- PEOPLE Last month's Link magazine changes to rent and rate rebates Budgetting and Crisis loans
featured an article on changes in - and many may not be receiving
HELPING social sescurity benefits from the correct amount of benefit. Most people who claim help
PEOPLE 11th April. By the time this If you need advice on the new from the DHSS are likely to be
edition is published the changes benefit scheme contact the Citi- offered a loan rather than a
grant. Here again however the
will have taken place, but many zens Advice Bureau.
Debt - aren't we all in it? fund is cash limited and payment
people will still be confused by
Debt, or credit to give it its the changes. Many may be is discretionary with no indepen-
respectable name, is something receiving less money than they SOCIAL FUND dant right of appeal. Repayments
rarely talked about. Like sex, used to - particularly because of will be set at fixed rates and
when people do talk about it, One of the main changes is the deducted from your benefit by
they usually lie. However a lot of introduction of the Social Fund, the DHSS. This could cause
us are in it up to our necks. CREDIT UNIONS which replaces the old system of considerable financial difficulty
Just about every shop in every A Cheaper Way grants for people on supplemen- for people already on a low bud-
High Street offers instant credit tary benefit. Payments from the get and it is therefore essential
to anyone who has a bank cheque to Borrow Social Fund fall into three groups. that anybody considering apply-
card, an easy thing to get hold of. Maternity and Funeral grants - ing for a loan gets independant
This is the acceptable end of the A public meeting will be held advice first.
to investigate the possibility These are paid as of right to The CAB can provide this ad-
market. At the unacceptable end
of setting up a Credit Union for people who receive certain bene- vice. As one of our aims is to use
are the loan sharks, who generally people living or working in
lend to people who cannot get West Swindon. fits. The grant does not have to our experience to comment on
other credit, such as those who Community Suite, Link Centre be repaid. legislation, we will also be moni-
on Monday 18th April at 7.30 toring the effect of the changes
cannot afford it. Loan sharks Community Care Grants -
p.m. and passing on information to
have been known to charge For further details contact
interest of 1,000% and more, Kingsley Matthews at Swindon These can be claimed by people our national organisation who
on income support and do not will be reporting on the changes.
some of these are illegal, but who Co-operative
Development
is going to tell the authorities Agency, 3 Harding Street, have to be repaid. However, they We would therefore like to hear
that they have been the victim of Swindon. Tel: 511082 (day) or are discretionary and come from from anybody on benefit who is
874511 (evenings). a cash limited fund. They will thinking of claiming from the
a loan shark?
generally be paid to assist people Social Fund or who is refused a
to move out of institutional care payment. Any information will
But there is a way out! The easiest way to save
into the community, to help of course be treated in the strict-
A Credit Union, on the other To benefit from a loan, you have families under stress and to pay est confidence.
hand, is a financial co-operative to become a regular saver. This for certain travelling expenses. The CAB is at I, Faringdon
registered under the Credit Union can be done either through a There is no independant appeal Road, Swindon. Tel: 28303. We
Act 1979 and monitored by the Standard Order or at various system. are open 10-4 weekdays.
Registrar of Friendly Societies. collection points in your com-
This means that it is owned and munity. Interest on savings is up Open 7 days a week
controlled by its customers, that to 8% tax free. You also get free
BASSETT Radio Controlled 24 Hr.
is those people who save and life assurance, every pound
borrow with it. When you deal saved is matched by a pound of Tyre Breakdown Service
with a Credit Union, you deal life assurance. TYRES
with it as a member-owner and We
that is a big difference compared 'I he cheapest way to borrow
to dealing with a bank or a finance Because Credit Unions exist only 414
house. Credit Unions have ob- to serve their members, loans
jectives other than making as big cost only 1% per month on the 00
a profit as possible. outstanding balance (i.e. 12.68
They were started to protect APR).
members in times of financial That is far less than a bank
emergency - and they still pro- loan or hire purchase, for example
vide peace of mind and protec- suppose you wanted to borrow
tion against the unexpected. So £500 and pay back over 24
the car breakdown and the months - look how much you *44
frightehing winter fuel bill can be are saving in interest with a
quietly and quickly taken care Credit Union Loan (at the time
of. of writing):—
While Credit Unions are thin A
on the ground in Great Britain,
they are growing, there are Credit Union £65

approximately 100 here. Over- Bank £97
seas there are many more, there (you save £32)

are over 400 in the Republic of Hire Purchase £162 lll.
0,0,
195 17c
Ireland and in the United States (you save £97) 'ae 1119. ?
they account for 16% of con-
sumer credit. Loans are made possible in a S 4 OL
To be a member of a Credit Credit Union by pooling mem-
Union you have to get together bers' receipts - it really is People
with other people who share a Helping People. Unit 7 Templars Way
'Common Bond', such a bond Industrial Estate, Marlborough Rd..
can be living in the same area, Clothing Alterations Wootton Bassett, Wilts. SN4 7EJ.
working for the same employer, & Repairs Tel: 872096 Telephone: (0793) 854771 (Eve. 850514)
being members of the same club,
society or church. Mrs. White, Freshbrook