COLUMNIST: Peter Metcalfe on sensible borrowing

A RARE moment of unity broke out amongst the West Sussex councillors at July’s full council meeting.

I was delighted that my motion calling for full council support for the West Sussex Credit Union, was unanimously passed across all spectrums of party politics.

This was very important to us, as you may know from my previous articles, I believe that pay-day lenders should be sent packing. We have all heard about real hardship that borrowing at the eye-watering, super-ridiculous rates of interest can bring.

And believe me, 5,800 per cent interest per annum is plainly indefensible, yet people still borrow.

Maybe because they do not know of this alternative way of borrowing. So what do you call someone who pays three times what they need to for something?

Plenty springs to mind and none are complimentary – but that is what you can do when you buy a TV, washing machine, fridge, or similar using credit arrangements from some high street stores.

The problem is that the purchase price for the goods is often way above what you would pay if you had the cash to buy them from normal outlets, and then the interest rate charged for these overpriced goods is very high – making it a very expensive purchase – but all looks well because of the attractive ‘low’ price per week.

Don’t be ripped off! Look at how a personal loan from the West Sussex Credit Union could help you next time you buy, say, a TV.

With Brighthouse, a £975 50in LED TV paid for over 156 weeks, at £12 a week, costs £1,872. A similar TV bought from Curry’s or similar for £420, paid for with a credit union loan over 156 weeks costs a total of £687.

By using a loan from the West Sussex Credit Union, you save money on the cost of the TV by being able to shop around for the best price and model, a huge £555 saving, meaning you need to borrow less at a reduced interest rate, resulting in a massive saving for you of £1,185.