If your financial problems have reached the point where you do not see a way out and you feel as though you are drowning in debt, your best way out is through declaring bankruptcy. Filing may well allow you to get your finances back on track Thankfully, there are now several web sites that are there to help people like you with bad credit to find the fast personal loans that you need. When you have bad credit, the first thing that you should be looking for is a loan company that
When you are on a low income, it is very difficult to get credit. And yet, most of us could not manage certain purchases outright, even if we get a decent wage. This is where the Credit Union offers a real alternative. Run by a volunteer board of directors which are elected by its members, a Credit Union is basically a financial cooperative, owned and controlled by its members. They offer affordable loans and encourage members to save. By law, the maximum a Credit Union can charge is 12.7% and this is charged on an ever reducing balance, which means that every week or month, you will pay less and less interest. There are no hidden charges and you will not be penalised for repaying the loan early. Anyone can join a credit union, as long as they are part of the 'common bond'. This could be people living in a shared area, working for the same employer or belonging to the same association. So how do you start your own credit union?The average time it takes to establish a credit union is between one and three years. The minimum number of members required for the initial set up is 21 and the maximum number of members once you are established is limited to just 5,000 people. After you have secured enough members to start your union, there are a number of tasks which will need to be completed.
- Firstly, decide on a common bond - where your credit union will operate
- Get a group together with the necessary range of skills and experience to develop a successful community business
- Carry out a pledge drive - find out just what demand there is for a credit union in the area you wish to service and use the information obtained to inform your business plan projections
- Join The Association of British Credit Unions (ABCUL) as a Study Group member - for just £35 a year, you get a full manual and access to all of ABCUL's information services
- Discuss and research your plans with the regulators - The Financial Services Authority (FSA) will need to approve your common bond and satisfy itself that your business plan and policies and procedures meet its standards. The FSA website www.fsa.gov.uk gives the regulatory requirements Credit Unions now have to meet to safeguard members money in the same way as banks and building societies
- Obtain funding & sponsorship -and include the figures in your business plan
- Choose officers - Officers and employees of the credit union will need to obtain Approved Persons Status from the FSA, and will need training for their roles
- Think about marketing & promotion and how you will meet your business plan targets
- Launch your credit union.