How credit unions can help during school summer holidays - Mark Fleet

Factor in the rising cost of childcare, summer camps and after-school clubs - as well as the ever-present shadow of back-to-school essentials like new uniforms that need paying for before the summer is over - and it's easy to understand why so many people dread the financial implications of the summer holidays.

To put the cost of this period into context, a recently carried-out survey of British parents by insurance broker Reassured revealed that parents spend as much as £1,047 per week on their children during school holidays. Unfortunately, the problems don't stop there.

As a result of the ongoing cost of living crisis, more and more people are turning to illegal loan sharks for money, as they look to borrow small amounts to pay for utility bills or groceries.

Furthermore, with the cost of living crisis having pushed people's budgets to breaking point, research suggests that the potential client base for loan sharks has grown significantly, meaning they are now able to prey on more than just society's most financially vulnerable and those who struggle for acceptance from traditional financial institutions. And, as prices continue to rise, business for illegal money lenders shows no sign of slowing.

However, with high interest rates, and sometimes violent consequences for failing to make repayments on time, borrowing from loan sharks is extremely risky and is an option nobody should consider.

Instead, those with poor credit histories should turn to their local credit union for help. According to the Bank of England, approximately 1.98 million people across the UK use credit unions, making them one of the most trustworthy options available for those struggling to make ends meet.

We are proud to provide our members with access to a range of loans and savings accounts, allowing them to make repayments in affordable installments and offering them competitive interest rates and flexible borrowing options, as well as providing them with a practical solution that simultaneously keeps their financial worries to a minimum.

We also encourage financial wellbeing and are community-focussed, offering a friendly and personalised service to our members and helping to guide families through application processes to ensure a seamless experience for those under financial pressure.

There's no denying that the rising costs experienced by families during the school summer holidays can put a strain on finances and detract from the joy of spending quality time together. But by eschewing illegal lenders in favour of their local credit union, families in need of financial support during these testing times might well find they have a valuable resource right on their doorstep.

Mark Fleet is CEO of Leeds Credit Union.