Telford & Wrekin low interest loans from council

The local authorities in Telford & Wrekin are offering loans to residents for paying living expenses. The funds are being provided at a low interest rate in partnership with the credit union. The money can be used to pay for various living expenses ranging from energy bills, white goods, rent, and anything else that the family needs and is struggling to acquire.

The aim of the council run scheme is to provide families an affordable alternative to payday loan companies. To help make the money more accessible to residents, the local authorities as well as credit union will even provide money to people with a poor credit rating. Families that are living in poverty or that just have a short term financial emergency can also apply for these Telford & Wrekin council loans.

Advantages of using a government backed loan

Many residents in the area will face a financial crisis from time to time. Some people have enough savings to make it through. Maybe they have money in the bank that will allow them to pay for a car repair or a higher priced heating bill during cold weather. Or if they lose a job, maybe the savings will cover their housing costs for a short period of time.

Others, such as the vulnerable, have often turned to high priced lenders for emergency cash. There have been examples reported to the council in which families have taken out loans with financing as high as 7000% APR. Some people even use their credit card to buy food for their home. That type of borrowing is not sustainable.

The local Just Credit Union Ltd and Telford & Wrekin council offer an ethical alternative. The money is issued in a similar way as what a payday company does, but the interest rate charge will be much lower than those other lenders. The cash will still be issued to people quickly, in a matter of hours if needed.

While the amount paid out will vary based on what is needed by the borrower and the results of an assessment, families may be able to receive as much as £300. This little bit of extra cash can go a long way to addressing any emergency bills that may be due. Or borrowers can use the money to consolidate other high priced debts they owe, and even pay off a credit card or payday loan.

The interest rate will be very low. It may be under 20 per cent APR. While this is still not cheap, it is much better than some of the other financing out there, such as a credit card or payday lender. In most cases, the funds will need to be repaid over a total of 52 weeks. This provides the borrower a large amount of time and flexibility on their repayment plan.

Even thought it is not usually recommended to take out any loan for paying bills, using this council backed scheme for borrowing will protect households from running up debts. It is much more affordable than many of the alternatives in the district.

The Telford & Wrekin council will also be sure to give the borrower information on more long term support too. This can, among other things, help them budget properly or increase their income, thereby reducing the need for future borrowing of any kind. Families across the area will learn how to make a decision on their finances that is positive in nature and they will be dissuaded from a cycle of borrowing.

For more information, the switchboard can be reached at 01952 380000. Or residents can drop in at one of the 7 Telford & Wrekin council offices in the area.