Get saving

How, when I barely have enough money to meet basic needs, can I save? Little spare cash and complicated government policies combined do not make saving easy for lone parents. But the more you save, the less likely you are to get into debt. If you can afford to pay a doorstep lender every week, then you are already managing your finances well, and could put that same amount into a savings account where it will make you money rather than costing you. High street banks offer a wide variety of savings accounts, but Credit Unions are fast becoming the new ‘local’ bank.

A Credit Union is a savings and loans co-operative whose members live and work in the same area. You can save as little or as much as you want. It’s not the amount that’s important but getting into the habit of saving regularly. You can deposit cash or cheques at local Credit Union Offices and at collection points in places such as local community centres and charitable or voluntary organisations. Members savings are pooled together to provide a common fund from which members can then apply to borrow.

After 13 weeks of regular saving you can apply to borrow up to twice the value of your savings. Interest rates never exceed 1% per month by law, so you won’t be running up extreme debts as we have seen above. A loan of £100.00, paid back weekly over one year, would only cost £6.21 in interest (i.e. the total cost of the loan would be £106.21). Credit Unions also offer free life insurance on your savings and loans.

There are clear benefits to this community-based and owned solution, but Credit Unions do not exist yet in all areas. Visit www.abcul.org or tel. 0161 832 3694 for local contact details.

There are other ways to make savings too. It is usually cheaper to pay utility bills by Direct Debit and many companies offer discounts. Contact local energy efficiency centres who can help you make savings on your fuel bills through simple household measures. The advice agencies listed in the Links section will also be able to advise you on the best financial products to use, and will be able to guide you towards further opportunities.