Credit Union borrowing hits fresh record
Credit Unions are lending record sums to borrowers in the UK as the cost of borrowing continues to rise, according to analysis of the latest Bank of England data from Freedom Finance, one of the UK’s leading digital lending marketplaces.
Total borrowing reached £1.92 billion in Q3 2022 – an increase of £255 million (15% increase) compared to the same quarter in 2021, and £51 million from the previous quarter. There are currently 1.94 million members which remains more than 38,000 higher compared to the same period the year before.
The latest Freedom Finance Credit Monitor revealed that average household quoted rates on credit cards hit 22.46%, their highest levels since 1998, while personal loans posted their highest quarterly increase of all time in Q4 2022.
Emma Steeley, CEO at Freedom Finance, said: “Credit Unions play a critical role in plugging this gap but they remain poorly known and understood. This is why it is so important that the industry continues to beat the drum for all providers – including Credit Unions – who are able to broaden access to the credit market and help more people benefit from more products which are suitable for their circumstances.”