UK Bill Help

Instead of using a payday lender or loan shark, the Glasgow City Council as well as partners such as the BCD Credit Union and Pollok have created an alternative product for vulnerable families. People can apply for financial help from the Wee Glasgow Loan, which is supported by the council and is aimed at helping financially vulnerable people get the cash they need for paying bills.

It is estimated that tens of thousands of citizens may be able to qualify for a Wee Glasgow Loan. Not only may the applicant use the money to pay for all types of living expenses (including rent, heating costs, food, white goods, transportation, etc.) but the credit unions also give the client free financial advice. Or then can get help in the re-entering mainstream banking/lending industry. The loans can also be combined with other government safety net programmes, including the Glasgow welfare scheme.

Therefore the city council programme not only provides the money someone needs for an emergency, but the advice from a credit union can help them get the long term support they need. The Wee Glasgow Loan programme provides money to pay for bills or to help someone keep their lights on at the same time as providing support to end the cycle of poverty.

Assistance provided by the Wee Glasgow Loan programme

The city council as well as the credit unions work together to offer this option to residents. It can often be combined with the welfare scheme. Any type of funds issued will have a much lower interest rate as well as fees then a payday loan or other high-cost products. This makes it easier to justify borrowing money to pay for any arrears on rent or other bills that the family has. Or they can use the money to pay for white goods or furniture. If needed, a resident can even borrow money from the credit union and use those funds to pay off other debts, such as credit cards.

The repayment terms are flexible and can range from 1 to 12 months, and as much as £600 can be borrowed to help pay for any bills that may be in arrears. The time-frame allows the customer time to get their financial condition back together without needing to incur fees from a payday loan company.

The interest rate will be at most 2% per month. But as the balance of the loan is paid off, that rate will decrease even more. There are also no long-term contracts to enter into, hidden fees, or penalties imposed by the lenders. This means that, in total, the borrower may need to pay anywhere from 15% to 25% per year on the money with no surprise fees. This is obviously much lower than other high cost products, such as payday lenders, credit card companies, or even rent to own companies.

Wee Glasgow Loans are also generally provided to a borrower at the same time as other services from Pollock or BCD Credit Union. It gives the borrower an opportunity to explore products such as credit cards or innovative saving accounts that Pollok or other companies have. Of course there are also budgeting services given to the borrower.

Who can apply for help?

Funds are available for all residents of the city. The council will even authorise money to be provided to families on benefits or that are in poverty. Wee Glasgow Loans can also help people with poor credit scores or other financial challenges. Since the aim is to stop people from using high priced lenders for emergency cash, this allows many different types of families to get help. In fact, priority is often given to those city residents that are not in the mainstream banking industry.

So many forms of financial support are given to the borrower when they borrow money. All of these services offered as part of the Wee Glasgow Loans can be critical to ending a cycle of debt or late payment charges. Contact one of the local credit unions or ring the council at 0141 287 2000 for information.