It’s time to start paying for Christmas…. 2007!

Just finished off the turkey and mince pies? Then now’s the time to start thinking about how to pay for Christmas … next year.

We all know about the Christmas hangover – and we don’t just mean too much booze. The cost of Christmas can leave us reeling and when the credit card bills arrive, many of us just panic. But paying for Christmas needn’t be a nightmare…

Credit unions might not yet have the high profile of credit card companies or banks, but they offer a safe and easy savings option. With the collapse of Farepak, and renewed concern about savings clubs, more and more people are looking at the benefits of credit unions. In fact, credit unions now manage almost £400 million pounds on behalf of over 400,000 members.

“Credit unions offer easy savings schemes for all sorts of needs, including Christmas,” says Mark Lyonette, Chief Executive of ABCUL – the Association of British Credit Unions. “Like banks and building societies, they offer the back up of the Financial Services Compensation Scheme and, with an ABCUL credit union, life insurance cover is included at no cost.”

Lower costs loans are also available and most credit union loans cost no more than 1% a month on the reducing balance of the loan (an APR of 12.7%). What this means, for example, is that a £1,000 loan over one year would result in a repayment of no more than £1,067 in total.

“There are no penalties for repaying a loan from a credit union early and borrowers only pay interest for the amount of time they’ve had the money,” explains Mark.

“Many ABCUL credit unions also offer the ‘Acard’. This payment card can be topped up from a credit union member’s savings, or a loan, and spent at Argos and Homebase stores.”

In addition, every time a member tops up their Acard, Argos will add another 5% to the value. For example, if you put £300 on the card from a credit union loan, Argos will add another £15.

So when you’ve got over this year’s Christmas headache, why not think about how to have a stress free Christmas next year? A local credit union could provide the financial pain relief that’s needed.