Groups join forces to advise on how to beat doorstep credit
The Society of St Vincent de Paul (SVP) joined forces yesterday with the Cork Chapter of Credit Unions and the Government’s Money Advice and Budgeting Service (MABS) to launch a major campaign informing people of the real cost of so-called doorstep credit and offered advice to people on how to avoid it.
The bodies have published a stark leaflet on the hidden costs of this form of credit.
A typical doorstep loan of €500 is repaid over a 26-week period at a rate of €25 per week. The total amount repaid is €650 — a cost of €150 to the person taking out the loan.
The same loan from a credit union would cost just €12.46, creating a massive saving of €137.54.
“Many people rely on doorstep credit to see them over particular times such as back to school, Christmas, communions, confirmations or funerals,” said Mairead Bushnell, the SVP’s regional president in Cork. “But many people end up coming to the SVP because of the trouble they find themselves in from the types of loans they have taken out. People should also look at the costs of buying goods and services on credit and avoid it if they cannot afford repayments.”
All three organisations involved in the campaign have found that the availability of doorstep credit has caused major problems for their clients. Their new leaflet uses a soccer analogy and suggests giving a red card to doorstep credit. It also lists all of the credit unions in the Cork region and gives contact phone numbers for each.
Contact details for the SVP and MABS are also provided.
“Organisations such as the SVP and MABS will assist with budgeting and credit advice,” Ms Bushnell said
The leaflet will be available from all three organisations and from local shops and libraries.
