On Wednesday 07 February, members of the GB Sister Society of the Global Women’s Leadership Network (GWLN) gathered in Bolton, hosted by Hoot Credit Union, to participate in expert training on how to boost resilience and within their credit unions.
The Committee invited Kerry McKevitt, Chief Executive at PNM People, to deliver the first of two sessions on building women’s resilience via Zoom in November 2023.
The session revised topics that were familiar to attendees of the first session and built on how to build their own resilience, as well as the wider team in organisations.
“It was great to see such a diverse group of women talk about mutual challenges, and how building resilience can help support their credit union journeys” said Chris Canham, GWLN Committee Member and Community Engagement Manager at Hoot Credit Union.
“It was a delight to present to the GWLN this week” said Kerry, “Building resilience to achieve our professional goals effectively is more important than ever. The group met to develop our personal ‘toolkits’ and explore how we can use these with our colleagues and wider teams.”
Kerry added “It’s vital that we come together to support, advocate for and empower each other and GWLN provides a superb forum for us to do this”.
Chris added: “I loved the opportunity to discuss a wide range of things in a safe and welcoming environment”
Credit union women gather in Bolton to learn about resilience.
Now we have all ridden the storm of pandemic and cost of living crisis, 2024 is the year to start building our financial resilience and making a Fresh Start.
Hoot is on a mission to improve the financial well-being of people in the community and we can start right here!
Make a Fresh Start by opening a Christmas Savings account
Building up for next Christmas can be the first step to reducing financial worry at a time when your finances are stretched.. In 2023, Hoot members had accumulated over £60,000 in Christmas savings and this year we want to make that £100,000. Find out more at www.wisewithmoney.org.uk/christmas-savings
Make a Fresh Start by thinking about debt consolidation
Citizens Advice research shows that 37% of people have used Buy Now Pay Later in the last 12 months and 25% of people have failed to make the repayments. Usage increases enormously at Christmas and in January some of you may be faced with a higher number of BNPL repayments than planned.
The average spend on credit cards at Christmas is £672. If you pay only the monthly minimum on that amount it will take you 2 years and 11 months to repay and cost up to £180 in interest.
A debt consolidation loan will mean you can reduce your monthly outgoings to one easy repayment and help you to manage your debt more easily. See more here
Make a Fresh Start by improving your financial well-being
Use our benefit calculator, or our Money Navigator to see if you are missing out on valuable income, able to reduce your outgoings and to generally clean up your finances. www.wisewithmoney.org.uk/help
By starting early and planning ahead you could find that 2024 is the year you get back on track with your money.
Christmas is looming and I am sure many of you are already getting organised, despite feeling the impact of rising prices and increased household bills. But where does that leave when you have Christmas to think about?
Go back to basics
If you are worried that you can’t afford Christmas, go back to basics and think about what a realistic Christmas looks like. Make a list of what you normally do/buy and step back. Do you need it this year? Can you economise? Is there an alternative?
Talk to your kids
Having an honest conversation with your kids about why you might not be able to get everything they ask for this year will ease the pressure and help them understand the true cost of Christmas.
Talk about the difference between needs and wants. Needs are the things we can’t do without like food and heat. Wants are the things we would like to have.
We all know that Christmas is about wants, but sometimes we have to be realistic.
Involve your kids in making your gift and food shopping list so they can get a true picture of what things cost. They might just have some ideas on how to save money.
Need to spread the cost?
If you need to borrow to spread the cost, make sure you borrow from a responsible lender like Hoot; we will only lend to you if we think you can afford it.
Avoid high-cost lenders and local money lenders. Especially informal and illegal money lenders. They may be fast in handing you the money, but you would pay dearly in the long run. They are called loan sharks for a reason.
Don’t keep the pressure of managing Christmas to yourself this year. Share you concerns with a friend or family member; talk to your kids about what is realistic this year; and keep it simple. You might find that your realistic Christmas makes a difference to your financial well-being.
Last year our regulator, the Financial Conduct Authority, launched a new set of rules called Consumer Duty.
The aim of launching the rules was to raise standards and trust in financial services, and to improve outcomes for consumers. The idea is that financial services providers, including credit unions, must always act in good faith to customers (in our case members) and avoid any foreseeable harm caused by using our services. The aim is to support people in pursuing their financial objectives.
A recent FCA paper looked at what can affect our choices when looking at financial products, especially loans. The study found:
Most consumers find financial products complex
Financial decisions involve risk and uncertainty
Many financial decisions are emotional
It can be difficult to learn about financial products
Financial decisions are often made when we are not at our best place in terms of financial resilience. We are finding that more and more people are borrowing to meet everyday expenses like rent and food. As a responsible lender we have always been careful about doing our best to make sure that lending to someone does not have a detrimental effect on their finances. Lower value and short-term lending is sometimes a good way to support members get over financial bumps; but if we see that there is little change or improvement in their financial situation in recent months, we would be reluctant to add to their financial burden for the sake of a short term fix.
We know that members can find it difficult to accept that we can’t always lend to them, but being a responsible lender is in our DNA and we would never lend to someone if we felt it would have a negative effect on their financial well-being.
We regularly provide information to members about where to find financial help, debt management, budgeting tools and how to improve financial well-being.
Borrowing more is not always the best outcome for members. Better outcomes may be building up savings, tackling short-term financial problems and developing financial resilience.
Credit unions including Hoot have always looked after the financial well-being of members, so we have embraced the new Consumer Duty rules and will use them to support our members in achieving their financial goals.
Today I have been with Greater Manchester community credit unions launching the SoundPound Loan.
Developed by the Credit Unions for Greater Manchester Consortium, the SoundPound Loan uses local money for local benefit. You can borrow from £200 to £1,000 at a fair rate of interest and is aimed at people whose options for fair and affordable credit is dwindling. The Sound Pound loan provides a safe solution for local people who are experiencing squeezed finances due to rising household costs.
According to Greater Manchester Residents Survey, a quarter (24%) of Greater Manchester residents are seeking information or support for the first time, reinforcing how the cost of living crisis is bringing financial concerns to those not traditionally experiencing them.
With deep roots in the communities, credit unions provide a positive and safe solution to short-term credit pressures as they encourage saving alongside loan repayments and always act in the member’s best interests for the long term.
Any money made by a credit union is invested back into the running of the credit union and the local area allowing us to offer fair rates of interest.
A unique credit union initiative in Greater Manchester
The city region is unique as it is currently the only consortium of credit unions in the UK which has launched a loan product in response to the cost-of-living crisis. That is why the initiative has been supported by Andy Burnham, the Mayor of Greater Manchester, who is a great supporter of credit unions.
