Repaying a credit union loan with benefit payments

Credit Unions across Wales offer people small loans that can be repaid directly from their Child Benefit payments.

The loans not only allow repayments to be directly from their benefit, but parents can also pay some of the benefit into a savings account for the future. Credit Unions introduced the loan schemes to offer parents a way to access a small loan and spread the cost of family expenses without having to resort to doorstep or payday lenders.

Claire Savage, Policy Officer for Credit Unions of Wales said:

“Family life can be expensive, whether it’s school uniforms and trips, birthdays or Christmas, a credit union Child Benefit Loan allows parents to spread the cost.”

Each time a Child Benefit payment is made, a percentage is used to pay off the existing credit union loan and the remainder can be saved into an adult or children’s account or returned to the member.

Start your application for a small loan.

As social enterprises with no external shareholders, credit unions are able to offer loans at very competitive rates of interest. Interest is charged on the reducing balance of the loan, there’s no hidden charges or penalties for paying the loan early and you may receive free life insurance.

 

Back to News

Got any questions? Please get in touch.

CONTACT US
Find my nearest credit union.
Blaenau Gwent
Brecon
Bridgend
Caerphilly
Cardiff
Carmarthenshire
Ceredigion
Conwy
Cynon Valley
Denbighshire
Flintshire
Gwynedd
Isle of Anglesey
Merthyr Tydfil
Monmouthshire
Neath Port Talbot
Newport
Pembrokeshire
Powys
Rhondda Cynon Taff
Swansea
Torfaen
Vale of Glamorgan
West Glamorgan
Wrexham
Show all
Credit union name:
Office or online:
CUW member:*
Blaenau Gwent
Office and Online Services
Yes
Office and Online Services
No
Brecon
Office and Online Services
Yes
Office and Online Services
No
Bridgend
Office and Online Services
Yes
Caerphilly
Office and Online Services
Yes
Office and Online Services
No
Cardiff
Office and Online Services
Yes
Carmarthenshire
Office and Online Services
Yes
Ceredigion
Office and Online Services
Yes
Conwy
Office and Online Services
Yes
Cynon Valley
Office and Online Services
No
Denbighshire
Office and Online Services
Yes
Flintshire
Office and Online Services
Yes
Gwynedd
Office and Online Services
Yes
Isle of Anglesey
Office and Online Services
Yes
Merthyr Tydfil
Office and Online Services
Yes
Monmouthshire
Office and Online Services
Yes
Neath Port Talbot
Office and Online Services
No
Newport
Office and Online Services
Yes
Pembrokeshire
Office and Online Services
Yes
Powys
Office and Online Services
Yes
Office and Online Services
No
Rhondda Cynon Taff
Office and Online Services
Yes
Swansea
Office and Online Services
No
Torfaen
Office and Online Services
Yes
Vale of Glamorgan
Office and Online Services
Yes
West Glamorgan
Office and Online Services
Yes
Wrexham
Office and Online Services
Yes