It’s obvious that saving for yourself is always beneficial to you. But did you know that when you save with your local credit union, you help your community financially too? Your savings can help someone else in your community access affordable credit, start saving for the first time, and generally improve the financial well-being of the community. You also have full access to your money, any time, but wouldn’t it feel good to know that whilst your own savings are growing, they are helping others at the same time.
Sustainable Solution
In a world where financial inequality becomes the norm, credit unions like Hoot offer a sustainable solution. Savers play a crucial role in this process. All Hoot savings are pooled to offer affordable lending to others, therefore supporting one another and helping to build resilience against economic challenges. Your savings not only protect your own future but also provide a lifeline for those who are less fortunate.
Hoot’s mission is to improve the financial well-being of the community. It does this by promoting good savings habits, and also by providing safe, legal and affordable credit to people who otherwise cannot access borrowing easily or cheaply.
More Inclusive Financial System
It’s a refreshing alternative to predatory and high-cost lenders, where profits often take precedence over people. With Hoot, every pound you save contributes to a fairer, more inclusive financial system. We estimate that for every £1 you save, you are helping someone else in your community to save up to £5.39 in loan interest by avoiding high-cost and predatory lenders. So having £1,000 in your savings account will result in community savings on loan interest of £5,400 in just one year! That saving stays in the local economy, so another way your savings supports your community.
With Hoot it is quick and easy to start savings. Whether you are saving for something special, or building a nest egg for the future, by saving a little each month you are building up your own nest egg and helping others build up theirs.
If you live or work in Bolton or Bury you can start saving today. Just decide how much you want to save and go to www.wisewithmoney.org.uk to set up your savings account.
Save up to £30,000
Access your savings at any time
Savings are protected by the Financial Services Compensation Scheme
Savings do not earn interest, but may earn a dividend subject to credit union performance
Remember, every great financial journey begins with a single step. By saving just a little each month, you’re not only securing your own future but also helping others achieve theirs. Together, we can create a community where everyone has the opportunity to thrive.
Join Hoot today and discover the power of saving together. Because when we support each other, we all win.
Regulation of the buy now pay later industry is long overdue says Chris Canham, CEO of Hoot Credit Union based in Bolton and Bury.
More than 1 in 10 consumers plan to put Christmas on credit using BNPL apps.
Millions of people use Buy Now, Pay Later firms, such as Klarna and Clearpay, when shopping online or in store. Managed correctly, they can be a cheap and quick way of accessing credit. But research shows many users aren’t aware that if something goes wrong, you face late fees, and, increasingly, marks on your credit file.
Hoot members tell us that they are increasingly being caught in the trap of signing up to BNPL deals to fund Christmas, and then face multiple and unaffordable repayments in January. Online shopping just five or six times for Christmas gifts can accumulate a hefty repayment commitment without realising the consequence of having to repay, or understanding that Buy Now Pay Later is a debt that will appear on a credit report. And debt charities have argued that BNPL companies encourages people to buy things they can’t afford.
The Financial Conduct Authority plans to bring this up until now unregulated practice under regulatory rules including compulsory affordability checks and offering clear and accessible information, including making it clear that BNPL is a debt.
Using a credit union save and borrow scheme to spread the cost of Christmas is a good way to pay for the cost this year, and save for next. A report by the Fairbanking Foundation says that getting into a good savings habit, particularly by those most financially vulnerable is the best course of action to cover those big-ticket items.
“Save as you borrow” (SAYB) is the practice of credit unions to encourage their members to put an amount into a savings account as part of making a loan repayment, meaning that when the loan is repaid, there is a savings pot to call upon to help the cost of next Christmas. At Hoot 84% of new borrowers are saving for the first time.
To find out more about how credit unions can help people spread the cost in an affordable and accessible way go to www.wisewithmoney.org.uk
Hoot credit union is a community-owned, co-operative financial services provider that provides a local focus to financial well-being.
This means that we focus on serving the needs of our local community, including local employers, and share our success – our profit only with the people that use our services.
How does this help the economy?
Hoot members have saved over £2m between them, 4% saving for the first time
Those savings are used to lend at fair and affordable rates to local people
For every £1 we lend: £1.87 is spent in Bolton and Bury, and £2.15 in Greater Manchester, recycling our savings within our community
Since 2019, this equates to a £20.9m boost to the local economy
Our savers and borrowers represent a broad range of our community, so that by saving and borrowing with Hoot, you are supporting the most financially challenged in the community, whilst still getting an ethical, local service.
Hoot is about connecting individuals who want socially responsible finance that contributes directly to their community and local economy.
Recycling money for the benefit of the community – what’s not to like! To find out more about how you can help your employees or clients to benefit from Hoot go to:
Here at Hoot, we talk about the ‘credit union difference’, but what does it mean? We say we are different to regular loan companies because we are!
We are owned by our community
Hoot, like all credit unions, is owned by its savers and borrowers – our members. Members are represented by elected Board members who lead the development of the business in the interest of members. Profit is shared amongst the members, so everyone who saves benefits from our success.
We promote good savings habits
Loan companies are driven by profit. We care about helping our members access fair and affordable credit; and build savings for the future. That is why all of our members save. When someone takes a loan, a minimum saving amount builds up and acts as collateral against the loan. Account holders have been pleasantly surprised at how quickly this pot can build up.
But you can save without borrowing!
More than just a credit score
We aim to provide fair and affordable loans. This means that we look at individual circumstances when assessing a loan application. Whilst we do take a person’s credit score into account, we also look at affordability and any previous borrowing with us.
Making the most of your money as the cost-of-living crisis continues to bite is more important than ever. Credit unions are committed to financial education, offering hints, tips and tools to help people manage their finances better
If you open a Hoot account or take out a loan you will be able to manage your account online and be reassured that, as a regulated, member-focused co-operative, we have your interests at heart; and run the business for the sake of the community.
