Falling behind with post-festive finances needn’t be the ‘horror story’ that is often depicted by the media, according to the founder of an Edinburgh-based community bank, which is already dealing with a ‘steady stream’ of savings applications for next Christmas.
This time every year when credit card bills fall through the letterbox, some sections of the media report on the ‘plight’ of families caught up in a maelstrom of spiralling debt.
However, this type of reporting can create alarm and is utterly irresponsible, according to Rev Iain May, the founder of Castle Community Bank, a not-for-profit savings and loans business which a firm emphasis on low cost responsible lending, financial education and putting ‘people before profit’.
Iain said: “The same tale resurfaces each year on how ‘hard pressed families’ are attempting to get their finances back on track, but the pressures of the first month of the year unquestionably leave an inedible mark on a lot of people, as they look at ways to refresh their finances.
“Rather than dwell on fear and worry, I think the media has a responsibility to advise people on where to seek independent advice to help structure their finances more effectively so hopefully, by next Christmas, people will be more inclined to have appropriate savings in place to cope with their Christmas spend.
“The ‘peer pressure’ some families face can be overwhelming and whilst some might seek a quick fix from a payday loan company to redress the overspend, the interest rates can be punitive, so it pays to shop around wisely.”
A former senior banking executive, The Rev Iain May was one of the founders of Castle Community Bank, which is fully regulated by the Financial Conduct Authority, Prudential Regulation Authority and is part of the Financial Services Compensation Scheme. Castle Community Bank was founded in 2016 following the merger of North Edinburgh Credit Union with other social lenders, and offers savings and loans to residents of Edinburgh and the Lothians.
Moreover, Castle Community Bank is completely not-for-profit with any surplus funds being ploughed back into communities around Edinburgh. The bank has no shareholders and is fully owned by its members.
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