Guildford Labour Party has opened an account with Surrey’s local credit union Boom! to help support it at this challenging time. The party has transferred a substantial amount of money from bank deposit accounts into Boom! so ensuring that its capital is working for the whole community.
Credit unions are independent not-for-profit organisations, owned and controlled by their members. Credit unions are committed to being responsible lenders, making ethical choices, and making life better for their members and the local community.
The objectives of Boom! are:
- promote saving and good money management
- to give people access to credit at a fair and reasonable rate of interest
- to use members’ savings to benefit all members and the community
- to help people be smarter in how they manage their money.
In practice this means that Boom is able to offer an affordable and ethical alternative to ‘doorstep’ and high interest, unsafe lenders. For many people high street banks are not an option. When Boom Credit Union approves a loan, a savings scheme is automatically set up for the borrower, encouraging a regular savings habit. Providing the member keeps to the terms of the loan, they will get to improve their Credit Score as well.
Catherine Illingworth said: It is brilliant that the Guildford Labour Party have opened an account with Boom Credit Union. Never has there been a better time to invest in a local community baking facility. As COVID 19 restrictions are gradually lifted and people return to a new normal, inevitably there will be those that need a loan to bridge an income gap. With more savings in the pot, Boom can potentially provide a loan with terms and interest that are entirely manageable.
Guildford Labour Party believes that investing in community focused credit unions like Boom! can have a major impact on the way those who struggle with their finances can access funds.
The Chair of Guildford Labour Party, Brian Creese said: Even before the Covid 19 crisis debt was emerging as a major problem for many in Guildford. We have reason to believe that once the economy starts moving again, those numbers will have increased significantly. We hope that our deposits will help Boom! to meet some of these challenges, and would hope other non-profit making organisations and individual savers might follow suit and support our local credit union.