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.
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:
At Hoot we want to make applying for a loan as easy as possible, but we feel it is important that you understand what getting a loan with us means.
If you are accepted for a loan you will be asked to sign a loan agreement. This includes the terms of the loan and what will happen if you don’t make the repayments. It is important that you ALWAYS read the terms and conditions of the agreement before you sign. Here are some of the things you should check when you apply.
Are you borrowing what you need?
Is what you want to spend the money on essential? Could you wait and save for what you want? Better to ask what you need to borrow than how much you can borrow.
Can you afford the repayments?
Your repayments will depend on how much the loan is for, how long you agree to repay it over, the agreed interest. You should make sure that by taking out the loan you are not overstretched and can afford the repayments.
How long will it take to repay?
Your loan repayments will include interest payments (This is called Cost of Credit) and is the amount you pay as your charge for getting the loan. Add this amount to your original loan and this is what you will repay altogether.
Are there any extras?
With a credit union loan there is no setup fee, early repayment or late payment charges. So if you want to make extra payments or want to pay early you can with no charges. In fact, if you pay your loan off early you will save on interest!
Are you comparing like with like?
APR% will help you compare loans but you should remember to compare only loans that you would be eligible to get. For example, if you have a poor credit history, comparing with a bank loan with a low APR% that you would need an excellent credit rating for, wouldn’t give you a true picture of what your options are.
What do we look for?
When we look at a loan application, we always take three things into consideration
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.
