Credit Unions Offer Safe, Affordable Alternative to Quick Fix Finance
Posted on Oct 28, 2025With the festive season fast approaching, Credit Unions are urging families across the UK to think twice before turning to high-cost credit or Buy Now Pay Later (BNPL) schemes to fund Christmas.
Research shows that 74% of UK families rely on credit to cover festive costs (Christmas Debt: The True Cost of Christmas | Lowell). While credit cards and BNPL apps might appear convenient, the repayments often lead to stress, overdraft charges, and long-term debt once January arrives. In some cases, households are still falling into the grip of illegal money lenders.
A safer way to borrow
Credit Unions – financial cooperatives run for people, not profit who have supported workers and families in Bolton and beyond for decades. They provide:
- Affordable loans (rates from 5.9% APR)
- Flexible repayments, often taken directly from wages
- No hidden fees or penalties
- Personalised savings support, such as dedicated Christmas Saver accounts
- Long-term financial guidance to help members plan beyond December
Unlike short-term lenders, Credit Unions help people build financial wellbeing for the years ahead.
Real stories, real impact
“They have really helped me with affordable loans and also savings like the Christmas savings account which takes the pressure away for what can be an expensive and or worrying time of year.” – Karl, Credit Union Member
“Quick replies to any queries and the loans are really helpful at Christmas. There’s been a few times where I’ve had emergencies at home, and they have been on hand to help.” – Lee Stone, Credit Union Member
These stories highlight that there’s a faster, fairer alternative to high-cost borrowing.
12 Days of Christmas Support
Beyond borrowing, Credit Unions are also focusing on wellbeing this festive season. To showcase our new Financial Wellbeing Hub, we will be running 12 Days of Christmas Support, a free practical guide that will help you make the most of the hub’s resources including:
- Budgeting planners to manage festive spending
- Loan repayment calculators to prepare for January and beyond
- Wellbeing advice to ease stress during the season
The initiative is open to anyone in the UK, helping families unwrap joy instead of debt this Christmas.
Find out more
Explore the 12 Days of Christmas Support, apply for an affordable loan, or learn more about how Credit Unions can help you stay in control this festive season.