0:00:02 > 0:00:04Every day, all over the country, millions of people
0:00:04 > 0:00:07are struggling to find the cash they need to make ends meet
0:00:07 > 0:00:09or to realise their dreams.
0:00:09 > 0:00:12- 40, 60, 80, 100. - Can I withdraw £500?
0:00:12 > 0:00:15I'm hoping for sort of 700-1,000.
0:00:15 > 0:00:16I mean, if I can get more, that'd be great.
0:00:16 > 0:00:20Many struggle to qualify for high-street borrowing,
0:00:20 > 0:00:23making them vulnerable to illegal loan sharks.
0:00:23 > 0:00:26I knew there was absolutely no chance
0:00:26 > 0:00:29of any of the high-street banks giving me any money whatsoever.
0:00:29 > 0:00:30Hiya.
0:00:30 > 0:00:34But there are a growing number of community banks or credit unions
0:00:34 > 0:00:36that are offering a helping hand,
0:00:36 > 0:00:40whilst at the same time, supporting the local area.
0:00:40 > 0:00:4320, 40, 60, 70, 80.
0:00:43 > 0:00:45I'm pleased to tell you your loan's been approved.
0:00:45 > 0:00:47Brilliant, thank you very much.
0:00:47 > 0:00:49They gave me the option of what I could afford.
0:00:49 > 0:00:52I could actually live again and actually save again.
0:00:52 > 0:00:55From household emergencies
0:00:55 > 0:00:57to kick-starting a new life or business.
0:00:57 > 0:00:59Organic veg boxes!
0:00:59 > 0:01:01I'm happy to say it's been approved.
0:01:01 > 0:01:03Brilliant, thank you, I'm so pleased. Thank you so much!
0:01:03 > 0:01:07We're following some of these life-changing stories.
0:01:07 > 0:01:13One of the best feelings ever, because I knew I could fund myself.
0:01:13 > 0:01:17I had enough working for somebody else, I needed to do my own thing.
0:01:17 > 0:01:18Without that help,
0:01:18 > 0:01:22the transformation to my life would have been impossible.
0:01:22 > 0:01:24So, it's a win-win situation, really.
0:01:29 > 0:01:30Today...
0:01:31 > 0:01:35..how a credit union loan helps a nurse turn her patienting skills
0:01:35 > 0:01:36to therapy for dogs.
0:01:36 > 0:01:40It was like somebody had said, "You've won £1 million!"
0:01:40 > 0:01:43One woman goes in search of a solution
0:01:43 > 0:01:45after her spending gets out of hand.
0:01:45 > 0:01:47I'm here to do some debt consolidation.
0:01:47 > 0:01:49Too much spending on the credit cards.
0:01:49 > 0:01:51And how a debt management company
0:01:51 > 0:01:54finally turns a young man's life around.
0:01:54 > 0:01:57The letters stopped, the e-mails, they stopped.
0:01:57 > 0:01:59Everything stopped.
0:01:59 > 0:02:01And I could breathe again.
0:02:04 > 0:02:08- Hello.- Hello. I'm applying to get a top-up on my loan.
0:02:08 > 0:02:13A rise in the cost of living has put more pressure on family budgets,
0:02:13 > 0:02:15but instead of tightening their belts,
0:02:15 > 0:02:19households in the UK have increased their spending this year,
0:02:19 > 0:02:24racking up an extra £1.6 billion in consumer debts.
0:02:24 > 0:02:28I was absolutely maxed out on every single bank account
0:02:28 > 0:02:31and credit cards and loans, at the limit.
0:02:31 > 0:02:34I couldn't even afford to repay them,
0:02:34 > 0:02:37or even keep up with the monthly payments.
0:02:37 > 0:02:41Credit and loans almost always comes at a price.
0:02:41 > 0:02:45The latest figures show families could be paying an average
0:02:45 > 0:02:49of almost £2,000 in annual interest payments alone.
0:02:52 > 0:02:53But there is help at hand.
0:02:55 > 0:02:58Almost 2 million Brits now use credit unions
0:02:58 > 0:03:00to help them manage their money.
0:03:00 > 0:03:03- How you keeping?- I'm keeping all right, yeah.- Good.
0:03:03 > 0:03:08Even if your income is low or you have a disastrous credit history,
0:03:08 > 0:03:12these community-based ethical lenders could provide the answer.
0:03:12 > 0:03:14Really, this is what banking's all about.
0:03:14 > 0:03:17- We can say to you yes, we're happy to do a loan for you.- Thank you.
0:03:17 > 0:03:22It's easier to get a loan and they don't charge you great interest.
0:03:22 > 0:03:23No, no.
0:03:23 > 0:03:26Credit union has been a life-saver.
0:03:29 > 0:03:32- Morning. Hiya.- Hello.
0:03:32 > 0:03:34- Hello!- Hello.
0:03:34 > 0:03:37The London Mutual Credit Union has four offices
0:03:37 > 0:03:42serving 27,000 members, most of whom live or work locally.
0:03:42 > 0:03:4520, 30, 40, 50, 60, £70.
0:03:45 > 0:03:46Thank you very much.
0:03:46 > 0:03:49Donna has arrived at the Peckham branch,
0:03:49 > 0:03:52looking for a loan to enable her to put all her debts together
0:03:52 > 0:03:54and pay them off more cheaply.
0:03:54 > 0:03:58I'm here to apply for a loan, to do some debt consolidation.
0:03:58 > 0:04:01Too much spending on the credit cards, catalogues,
0:04:01 > 0:04:03spending outside of my means, some would say.
0:04:05 > 0:04:08Donna is working part-time as a carer,
0:04:08 > 0:04:10while she studies to become a nurse.
0:04:11 > 0:04:14She wants to combine her existing debts,
0:04:14 > 0:04:16which she's run up on store and credit cards,
0:04:16 > 0:04:20into a single loan with a lower interest rate.
0:04:20 > 0:04:23I want to give my papers in and then hopefully, fingers crossed,
0:04:23 > 0:04:24it gets approved.
0:04:24 > 0:04:26- Hello!- Hiya.
0:04:26 > 0:04:28I'm here to apply for a loan.
0:04:28 > 0:04:30OK. Have you had a loan with us before?
0:04:30 > 0:04:31- I have, yeah.- Lovely.
0:04:31 > 0:04:33Did you want to try and keep your repayments the same,
0:04:33 > 0:04:35- leave it like that? - Yeah, yeah, that's fine.
0:04:35 > 0:04:39I've been with the credit union since 2007 or '08,
0:04:39 > 0:04:40when I moved into the area.
0:04:40 > 0:04:42What I like about it is that credit union,
0:04:42 > 0:04:44I think it's more, like, community-based,
0:04:44 > 0:04:46where banks are more like business.
0:04:46 > 0:04:49So, I feel like credit union works for the people.
0:04:49 > 0:04:51That's why I always come back here, because I always get
0:04:51 > 0:04:53good service with them, I've never had any problems.
0:04:53 > 0:04:56Lovely, so the loan department will be in touch with you
0:04:56 > 0:04:57- within ten working days.- OK, cool.
0:04:57 > 0:04:59- They usually text you with the decision.- Thank you.
0:04:59 > 0:05:02- Have a lovely day.- You too, bye-bye. - Take care, bye-bye.
0:05:04 > 0:05:07If the loan's approved, Donna should have more money in her pocket,
0:05:07 > 0:05:10because she'll be paying less interest.
0:05:14 > 0:05:18While credit unions are providing financial services
0:05:18 > 0:05:20for personal customers around the UK,
0:05:20 > 0:05:24there are other ethical lenders who focus on small business funding.
0:05:24 > 0:05:27These are also not-for-profit organisations,
0:05:27 > 0:05:29offering loans to local people
0:05:29 > 0:05:33who might be turned down by traditional lenders.
0:05:33 > 0:05:35It's that personal service I remember from banking
0:05:35 > 0:05:39years and years ago, has all but disappeared now.
0:05:39 > 0:05:40PHONE RINGS
0:05:40 > 0:05:43South West Investment Group offers business advice,
0:05:43 > 0:05:46mentoring and low-cost finance.
0:05:46 > 0:05:48Compared to commercial lending,
0:05:48 > 0:05:51it's reasonably easy to get your hands on.
0:05:51 > 0:05:54Sarah Osborne is a fund manager.
0:05:54 > 0:05:58It's quite wide, anyone from 18 to any age,
0:05:58 > 0:06:01nearly every business sector.
0:06:01 > 0:06:04We can lend to people who've been in business several times before,
0:06:04 > 0:06:08to people who never thought about it before, so it's actually very open,
0:06:08 > 0:06:11and that's why it's such a special loan.
0:06:11 > 0:06:15It's low interest, it's easy to find out about.
0:06:16 > 0:06:19Sarah loves the variety her job brings.
0:06:19 > 0:06:22- Thank you.- Every business is different.
0:06:22 > 0:06:27Some of them are much more ambitious than others,
0:06:27 > 0:06:31and some of them are an extension of kind of lifestyle.
0:06:31 > 0:06:35There's no "computer says no" in our business, there's none of that.
0:06:35 > 0:06:38It's about us engaging with the person,
0:06:38 > 0:06:41understanding the business idea,
0:06:41 > 0:06:44and looking at the finance they're looking for and thinking,
0:06:44 > 0:06:47the bottom line is, "Will we get this money back?"
0:06:49 > 0:06:56In 2016, the organisation got an enquiry from neo-natal nurse Marion,
0:06:56 > 0:06:59who was looking for a £22,000 loan
0:06:59 > 0:07:01for a very unusual business start-up.
0:07:04 > 0:07:07Marion's plan was to set up a hydrotherapy spa
0:07:07 > 0:07:09for dogs in Gloucestershire.
0:07:09 > 0:07:11It's very similar to nursing,
0:07:11 > 0:07:14in that you're trying to make a difference
0:07:14 > 0:07:17and help someone get over an illness.
0:07:17 > 0:07:20Children and dogs, the biggest vehicle is play,
0:07:20 > 0:07:22so that's the same.
0:07:22 > 0:07:24You can't get near children without play
0:07:24 > 0:07:25and you can't get near dogs without play,
0:07:25 > 0:07:27so there's a lot of similarities in that way.
0:07:27 > 0:07:30Yay, good boy!
0:07:32 > 0:07:34Always eating.
0:07:34 > 0:07:39Since childhood, Marion had always wanted to be a nurse.
0:07:39 > 0:07:40It was a long-held ambition.
0:07:41 > 0:07:44I used to dress up in a nurse's outfit.
0:07:44 > 0:07:48It was never anything else, it was always going to be nursing.
0:07:48 > 0:07:52Marion began her busy nursing career in 1986,
0:07:52 > 0:07:55specialising in neo-natal intensive care.
0:07:55 > 0:07:59As soon as she could, she and her partner Stu
0:07:59 > 0:08:03made space in their lives for her other passion - dogs.
0:08:03 > 0:08:08Bilbo was probably a year, 18 months old,
0:08:08 > 0:08:10and he'd been a very busy puppy.
0:08:10 > 0:08:14He would run for miles after hares.
0:08:14 > 0:08:20He had so much energy and he would be jumping like anything.
0:08:20 > 0:08:24He'd do what looked like star jumps.
0:08:24 > 0:08:26It was when Bilbo became ill
0:08:26 > 0:08:29that Marion's life took an unexpected turn.
0:08:30 > 0:08:32Come! Come!
0:08:32 > 0:08:35We noticed that he stopped, he almost went backwards.
0:08:35 > 0:08:41He became less energetic, quiet, withdrawn.
0:08:41 > 0:08:44Bilbo was diagnosed with joint dysplasia,
0:08:44 > 0:08:47which made it possible he'd need hip replacements.
0:08:49 > 0:08:53But the vet suggested hydrotherapy might improve his condition.
0:08:54 > 0:08:56Just like humans,
0:08:56 > 0:08:59dogs can benefit from swimming to help repair muscles
0:08:59 > 0:09:03after injury or surgery, and to boost fitness.
0:09:03 > 0:09:06We took him to this hydrotherapy centre.
0:09:07 > 0:09:09He was quite anxious to begin with.
0:09:10 > 0:09:14But within, I don't know, eight minutes, he was away.
0:09:16 > 0:09:18After months of pain,
0:09:18 > 0:09:22Bilbo was suddenly able to move freely and play in the water.
0:09:22 > 0:09:24We just saw this dog change again.
0:09:24 > 0:09:26We were getting our puppy back.
0:09:26 > 0:09:29We watched him retrieve toys again.
0:09:29 > 0:09:31He was playing.
0:09:31 > 0:09:34It was fantastic, she'd throw the toy
0:09:34 > 0:09:37and he'd go and get it and his little tail...
0:09:37 > 0:09:39As Bilbo's energy levels rose,
0:09:39 > 0:09:43Marion was surprised by her own new-found enthusiasm.
0:09:43 > 0:09:48I thought I was going to be doing something that was good for Bilbo,
0:09:48 > 0:09:51but I didn't expect to get that buzz.
0:09:51 > 0:09:53After just a couple of sessions,
0:09:53 > 0:09:56Marion made a life-changing decision.
0:09:56 > 0:10:00I came home one day and I said, "Stu, I want to do this,
0:10:00 > 0:10:03"I don't want to just do it for Bilbo, I want to do it."
0:10:04 > 0:10:06And he said, "All right, then."
0:10:06 > 0:10:08He said, "I've never seen you so happy."
0:10:08 > 0:10:12Marion's idea of setting up her own dog spa was going to be expensive,
0:10:12 > 0:10:14so she needed a loan.
0:10:15 > 0:10:19I went to my own bank, they said no.
0:10:19 > 0:10:21So, I changed bank,
0:10:21 > 0:10:24to somebody else, and they said no.
0:10:24 > 0:10:27I tried my partner's bank,
0:10:27 > 0:10:30and I tried another bank and when you get that many nos,
0:10:30 > 0:10:32and it was a common theme,
0:10:32 > 0:10:34I thought, well, this isn't going to happen.
0:10:34 > 0:10:36Then Marion found out about SWIG,
0:10:36 > 0:10:40which provides loans to get business ideas off the ground.
0:10:40 > 0:10:43I didn't know what the different terms meant,
0:10:43 > 0:10:45I was as green as green can be.
0:10:45 > 0:10:48She was put in touch with loans manager Sarah.
0:10:49 > 0:10:51She gave me direction.
0:10:51 > 0:10:57She liked my business plan, she was very enthusiastic, very encouraging.
0:10:57 > 0:11:01She understood what it was all about, which was really good for me,
0:11:01 > 0:11:05and she was enthusiastic about the whole notion of hydrotherapy,
0:11:05 > 0:11:08so that helped me, actually.
0:11:08 > 0:11:11That gave me a big lift.
0:11:11 > 0:11:14In order to build her hydrotherapy pool and kit it out,
0:11:14 > 0:11:18Marion needed Sarah to approve a £22,000 loan.
0:11:20 > 0:11:23It came back with a yes and she phoned me to tell me first,
0:11:23 > 0:11:25and I was like squealing down the phone.
0:11:25 > 0:11:27- I was like... - SHE SQUEALS
0:11:27 > 0:11:29My voice went really high-pitched.
0:11:29 > 0:11:33I was just, it was like somebody had said you've won £1 million.
0:11:34 > 0:11:35Go on, then!
0:11:35 > 0:11:39It's such a big jump for people, and Marion included,
0:11:39 > 0:11:42moving from a professional job in the health service
0:11:42 > 0:11:46to being her own boss and doing something completely different.
0:11:46 > 0:11:49The investment group's involvement doesn't end with the loan.
0:11:49 > 0:11:54They carry on offering advice and support, and nine months on,
0:11:54 > 0:11:57Sarah's come to see how Marion is doing.
0:11:57 > 0:11:59- Marion!- Hello. Hi, Sarah.
0:11:59 > 0:12:01This is our pool.
0:12:03 > 0:12:07- Yeah, it's six metres by 2.5... - Yes.- 1.1 metres deep.
0:12:09 > 0:12:11In Marion's colourful beach huts,
0:12:11 > 0:12:14dogs can also have the full spa treatment,
0:12:14 > 0:12:16with showers, a blow-dry...
0:12:16 > 0:12:19Oh!
0:12:19 > 0:12:22- It's quite strong! - ..and a massage.
0:12:22 > 0:12:24That's it, one more.
0:12:24 > 0:12:26I found it terrifying at first.
0:12:26 > 0:12:29You know, I had no idea what was involved
0:12:29 > 0:12:31and I still feel I had so much to learn,
0:12:31 > 0:12:34being very naive about certain things,
0:12:34 > 0:12:38but I think I needed that direction and that support
0:12:38 > 0:12:41and also knowing that I could contact people.
0:12:41 > 0:12:43And you know, when you begin to enjoy it,
0:12:43 > 0:12:46you wear that responsibility a bit more lightly, in a way.
0:12:46 > 0:12:49- I don't know!- Because it becomes your life.
0:12:49 > 0:12:52- Yeah.- It's not something additional, you know.
0:12:52 > 0:12:54It just is who you are now.
0:12:54 > 0:12:57We've had people come for birthday treats,
0:12:57 > 0:12:59they've just wanted to swim with their dog.
0:12:59 > 0:13:01- What, their birthday or the dog's birthday?- Their birthday.
0:13:02 > 0:13:05Never mind swimming with dolphins, swim with the dog!
0:13:05 > 0:13:09- Yeah, exactly...- It's the real deal. - It's the new thing!
0:13:09 > 0:13:13I must say, I didn't quite know what to expect.
0:13:13 > 0:13:17But when you see the end result of something working,
0:13:17 > 0:13:20and the customers using it, and you're training staff...
0:13:21 > 0:13:24That's the real joy of it.
0:13:26 > 0:13:28I like it when it works out at the end,
0:13:28 > 0:13:30that's the real buzz at the end of it.
0:13:30 > 0:13:32I feel so proud.
0:13:32 > 0:13:35It's like having kittens or something,
0:13:35 > 0:13:37and seeing them grow up into cats!
0:13:40 > 0:13:41But I'm claiming too much there.
0:13:41 > 0:13:45All the credit is down to the business owners, to be honest.
0:13:46 > 0:13:52For Marion, her business and her confidence are growing all the time.
0:13:52 > 0:13:54Having a team around me that I want there,
0:13:54 > 0:13:58that have the same visions, that's really good.
0:13:58 > 0:14:00I can make an assessment and determine how I'm going to
0:14:00 > 0:14:06treat a dog, it's up to me, and that responsibility is awesome.
0:14:06 > 0:14:08It's just a great feeling.
0:14:10 > 0:14:12Bye!
0:14:15 > 0:14:16In Peckham...
0:14:16 > 0:14:19Can you just confirm the first line of the address?
0:14:19 > 0:14:22..carer Donna is back at her local credit union
0:14:22 > 0:14:25to see if she's going to get the £500 loan,
0:14:25 > 0:14:27so she can clear her credit card debts.
0:14:29 > 0:14:30I'm nervous a little bit.
0:14:30 > 0:14:32I just feel like they're going to say no, but I never know,
0:14:32 > 0:14:34know what I mean? I'm optimistic either way, though,
0:14:34 > 0:14:36no matter what I think, I'm optimistic.
0:14:36 > 0:14:40The decision is in the hands of loans officer Jay.
0:14:40 > 0:14:44When we receive an application for debt consolidation,
0:14:44 > 0:14:47we are obviously expecting for there to be some defaults
0:14:47 > 0:14:50on her credit file or maybe some missed payments, stuff like that.
0:14:50 > 0:14:52Obviously that is the reason why they've applied
0:14:52 > 0:14:54for the loan application. So, what I'll do right now
0:14:54 > 0:14:57is just check the credit file and see how it's looking.
0:14:58 > 0:15:01It doesn't look too bad to me, to be honest with you.
0:15:01 > 0:15:03Application looks OK so far.
0:15:03 > 0:15:07She's had numerous loans with us and has paid them off all on time.
0:15:07 > 0:15:11Checks done, it's time for Donna to hear his verdict.
0:15:12 > 0:15:15- Hello, Donna, how you doing? My name's Jay.- Nice to meet you.
0:15:15 > 0:15:17- You all right?- I'm good, thank you. - Take a seat here.
0:15:19 > 0:15:21Remind me, what are you spending the funds on again?
0:15:21 > 0:15:24- Consolidation.- OK. - Not even for, like, pleasure.
0:15:24 > 0:15:28- Yeah, yeah.- I've got some good news for you today.- OK, cool.
0:15:28 > 0:15:30The loan application has been approved
0:15:30 > 0:15:32- for the full amount of £500.- Great.
0:15:32 > 0:15:34I'll just quickly go over the terms.
0:15:34 > 0:15:37So, it's going to be £500 over 18 months.
0:15:37 > 0:15:40And the repayments are going to be £60.
0:15:40 > 0:15:43Is there any questions that you have today, Donna?
0:15:43 > 0:15:45- No, I don't have any. - Well, that's it for today.
0:15:45 > 0:15:48- Thank you for your time. - No problem at all.
0:15:48 > 0:15:50And we're pleased to help.
0:15:50 > 0:15:51Just keep up the good work.
0:15:51 > 0:15:54The only reason we are able to help is because obviously,
0:15:54 > 0:15:55- you are saving well with us.- OK.
0:15:55 > 0:15:58You've had a good history with us, as well, of loans.
0:15:58 > 0:16:02- And yeah.- Thank you for helping me out, man, I appreciate it.
0:16:02 > 0:16:05- No problem at all.- Thank you. - Here to help!- Feel beautiful today!
0:16:07 > 0:16:09She seemed really surprised at the decision.
0:16:09 > 0:16:11You can just see there was a lot of weight off her shoulders
0:16:11 > 0:16:13when we did give her the decision.
0:16:13 > 0:16:15Went really good, to be honest with you.
0:16:15 > 0:16:17I'm quite ecstatic with the decision, I must say.
0:16:17 > 0:16:19I'm going to pay off my debts and have one direct debit coming out.
0:16:19 > 0:16:21I feel a bit of relief, to be honest with you.
0:16:21 > 0:16:23Something I don't have to think about.
0:16:23 > 0:16:24I'll sleep lighter tonight.
0:16:25 > 0:16:27Thank you, darling.
0:16:27 > 0:16:30As locally-based member-owned organisations,
0:16:30 > 0:16:34credit unions aim to provide more than just financial services,
0:16:34 > 0:16:37by supporting the people and communities they serve.
0:16:37 > 0:16:39- Morning.- Hello.- Hi.
0:16:39 > 0:16:41Can I take your proof of identity
0:16:41 > 0:16:44and proof that you work in the borough as well, while you do that?
0:16:44 > 0:16:45Thank you.
0:16:45 > 0:16:47You do get to know the members more,
0:16:47 > 0:16:50they do feel that, like, they're your friend,
0:16:50 > 0:16:53more than I think they would do with anyone in the bank.
0:16:53 > 0:16:55They come to us for help and advice.
0:16:57 > 0:17:01Some of them come in as new members and ask us about the loans.
0:17:01 > 0:17:04If they have to be a member with us to apply for a loan and, yes,
0:17:04 > 0:17:06you do have to become a member first.
0:17:08 > 0:17:10- You're applying for a loan...? - Yeah.
0:17:10 > 0:17:13Usually with loans, you notice there's certain times of the year,
0:17:13 > 0:17:16so it'll be, like, Christmas and summer.
0:17:17 > 0:17:19At London Mutual,
0:17:19 > 0:17:23manager Lucky knows how important that is to every member.
0:17:23 > 0:17:27If the credit unions don't provide that kind of services,
0:17:27 > 0:17:29especially low-cost loans,
0:17:29 > 0:17:33our members will go to the loan sharks or high-cost lenders,
0:17:33 > 0:17:35like payday lenders.
0:17:35 > 0:17:36They don't have other choice,
0:17:36 > 0:17:42because high street banks may not lend money for them.
0:17:42 > 0:17:43- Thank you!- OK.
0:17:46 > 0:17:51Mum of two Sam is hoping to join the 27,000 members of the credit union
0:17:51 > 0:17:53so she can get a loan.
0:17:53 > 0:17:58I care for two of my children who suffer from mental health,
0:17:58 > 0:18:00and one has myasthenia gravis.
0:18:00 > 0:18:03- Hiya.- Hello, you all right? - Yes, thank you.
0:18:03 > 0:18:06My mum's been a member for about two years now,
0:18:06 > 0:18:09and she tells me there's a lot of benefits that you can receive
0:18:09 > 0:18:12if you're a member of the credit union.
0:18:12 > 0:18:15- How can I help?- Basically, I wanted to open a new account.
0:18:15 > 0:18:17OK, have you not got an account with us?
0:18:17 > 0:18:19No, my mum has.
0:18:19 > 0:18:21So, do give live or work in Southwark?
0:18:21 > 0:18:23I'm living at my mum's.
0:18:23 > 0:18:26I've been a carer for so long, I'd love a holiday.
0:18:26 > 0:18:29So, I'll be definitely interested in maybe a short-term loan.
0:18:29 > 0:18:31- So, I can give you the forms. - Thank you very much.
0:18:31 > 0:18:34- Just bring it all back. - I will do.- All right.
0:18:34 > 0:18:37- Thank you.- You're welcome. - Thanks a lot.- Cheers, bye.
0:18:37 > 0:18:38Bye-bye.
0:18:39 > 0:18:43If Sam gets her loan, she wants to go on holiday to Jamaica,
0:18:43 > 0:18:47where she's hoping to bump into Olympic hero Usain Bolt.
0:18:47 > 0:18:50He doesn't live too far away from where my family live.
0:18:50 > 0:18:54Apparently, we come from the same parish, so I'd love to go there,
0:18:54 > 0:18:56hoping to see Bolt.
0:19:01 > 0:19:03Still to come...
0:19:03 > 0:19:08How a credit union loan helps one woman slash her high-interest debt.
0:19:08 > 0:19:11You're going to be a lot better off each month,
0:19:11 > 0:19:14simply by paying that loan off with the credit union loan, aren't you?
0:19:14 > 0:19:15I'm very pleased.
0:19:17 > 0:19:21And support from an ethical lender helps get two boys safely to school.
0:19:21 > 0:19:25And you can see he's actually trying to do some joined-up writing now.
0:19:25 > 0:19:27After a week, he's kind of picked it up really quickly.
0:19:32 > 0:19:34With many households struggling to manage
0:19:34 > 0:19:36in the current financial climate,
0:19:36 > 0:19:40families are still turning to payday lenders and loan sharks
0:19:40 > 0:19:43to help them out of financial difficulties.
0:19:43 > 0:19:45But many of us are blissfully unaware
0:19:45 > 0:19:48of how much we're paying in interest charges.
0:19:48 > 0:19:52- Do you know what APR stands for? - No clue. No.
0:19:52 > 0:19:55- Do you want to guess what it means? - Not really.
0:19:55 > 0:19:58APR is a foreign word to me that I can only see in the small print
0:19:58 > 0:20:01on things that come up on TV.
0:20:01 > 0:20:03What? It normally looks like a massive number,
0:20:03 > 0:20:06like 1,065% interest,
0:20:06 > 0:20:09and that's normally when I go, "I probably shouldn't take that out."
0:20:09 > 0:20:12If you borrow so much money over a certain amount of years
0:20:12 > 0:20:14and you're doing a certain amount of payments every month,
0:20:14 > 0:20:16they'll add on a certain percentage amount
0:20:16 > 0:20:18and that will just be your interest,
0:20:18 > 0:20:21and that's how the companies make money from lending you money.
0:20:21 > 0:20:25While short-term loans may seem like a quick and easy solution,
0:20:25 > 0:20:29it's important to understand how much you might have to repay.
0:20:30 > 0:20:34Borrowing £400 for one month from a typical payday loan company
0:20:34 > 0:20:38could cost over £90 in interest.
0:20:38 > 0:20:40When it comes to credit and loans,
0:20:40 > 0:20:42the most sensible thing is to borrow smart,
0:20:42 > 0:20:46and that means only borrowing money that you really need to,
0:20:46 > 0:20:48for the shortest period possible,
0:20:48 > 0:20:50and paying it off as soon as you can.
0:20:50 > 0:20:52You don't want to pay a penny more in interest
0:20:52 > 0:20:55than you absolutely have to, and so it's about looking at your options,
0:20:55 > 0:20:57to find out what the cheapest way for you to borrow is,
0:20:57 > 0:21:00and then getting rid of that debt as quickly as you can,
0:21:00 > 0:21:02if you are being charged interest.
0:21:05 > 0:21:0721-year-old Will from Derbyshire
0:21:07 > 0:21:11found out about expensive loans the hard way.
0:21:11 > 0:21:13It started three years ago,
0:21:13 > 0:21:17when a hobby that began as a bit of fun got out of control.
0:21:17 > 0:21:21When I first started gambling, it was usually I'd be in the pub
0:21:21 > 0:21:24with my friends, just having a few beers and we'd see the slot machine,
0:21:24 > 0:21:28so we'd say, "Let's go and have a fiver each in it."
0:21:28 > 0:21:32And the first few times, I pulled away some pretty good money.
0:21:32 > 0:21:38I mean, off a slot machine in a pub, the jackpot's about £70-£100,
0:21:38 > 0:21:41and I hit the repeat on a jackpot, so I got £200.
0:21:41 > 0:21:45When you've had that feeling of coming away with money,
0:21:45 > 0:21:49when you've had that rush, it's hard to get rid of.
0:21:49 > 0:21:52So, it all starts off at pub fruities
0:21:52 > 0:21:55and then that's sort of the gateway into the bigger things.
0:21:57 > 0:22:00Will's interest in gambling continued to grow
0:22:00 > 0:22:04and he even got himself a job, in a bookies.
0:22:04 > 0:22:05Really enjoyed it, you know,
0:22:05 > 0:22:08just seemed an all-round perfect fit for me.
0:22:08 > 0:22:11What I'd do is at work, I'd make fake accumulators,
0:22:11 > 0:22:12just to sort of pass the time.
0:22:12 > 0:22:16So, I'd get a bet slip, I'd write down who I thought was going to win,
0:22:16 > 0:22:19just to see, you know, what I would have won,
0:22:19 > 0:22:21and if it had come in.
0:22:21 > 0:22:24And quite a few times, it started to roll in a bit more
0:22:24 > 0:22:26and I was thinking, "Oh, I could have won money there."
0:22:26 > 0:22:29It happened about four or five times and then I decided,
0:22:29 > 0:22:32"No, I'm feeling lucky, I'll go try myself."
0:22:32 > 0:22:36Will decided to take his new hobby to the next level.
0:22:36 > 0:22:39So, I started going to the casino with a group of friends.
0:22:39 > 0:22:43Usually only spending £20-30 a time.
0:22:43 > 0:22:46You see how easy it is to make money from gambling,
0:22:46 > 0:22:50you can turn £20 into £200 like that in a casino.
0:22:50 > 0:22:52It's so quick,
0:22:52 > 0:22:56but what you don't also realise is that when you're putting £20 down
0:22:56 > 0:22:59and you lose it and you put another £20 down and you lose it,
0:22:59 > 0:23:01you can lose £100 in...
0:23:01 > 0:23:04I think the quickest I lost it was in about a minute and a half once,
0:23:04 > 0:23:07£100, you know, and that's a day's work, just gone.
0:23:08 > 0:23:10Will was hooked,
0:23:10 > 0:23:14but his job didn't earn him enough to fund his trips to the casino.
0:23:14 > 0:23:17So, he went in search of extra cash.
0:23:17 > 0:23:21I got my first, I'd say adult job, working in a contact centre,
0:23:21 > 0:23:23and I'd never seen a wage packet like it.
0:23:23 > 0:23:28The pay was great, and when it hits your bank for the first time,
0:23:28 > 0:23:30it's this real sort of rush,
0:23:30 > 0:23:33like wow, I've got a lot of spare cash here.
0:23:34 > 0:23:35Because of the bigger wage,
0:23:35 > 0:23:37I'd taken out all of these different luxuries.
0:23:37 > 0:23:39I had two phone contracts.
0:23:39 > 0:23:41And when all those bills start to come through,
0:23:41 > 0:23:43that's when it all really gets on top of you.
0:23:43 > 0:23:46But no matter what, even though you know that you've got bills to pay,
0:23:46 > 0:23:49and even though you know that you've got things to come out
0:23:49 > 0:23:52towards the end of the month, you will still go and gamble,
0:23:52 > 0:23:55because you've got this inkling in the back of your mind that
0:23:55 > 0:24:00I could go into the casino tonight with £100 and win £50,000
0:24:00 > 0:24:01and that would solve all my problems.
0:24:03 > 0:24:06You know, it wasn't £10 bets on blackjack tables any more,
0:24:06 > 0:24:09it was £50, £100 bets, trying to make quick money,
0:24:09 > 0:24:11but the quicker you try and make money,
0:24:11 > 0:24:12the quicker you lose it as well.
0:24:14 > 0:24:15Will was in trouble.
0:24:15 > 0:24:19Losses at the casino pushed him deep into debt.
0:24:19 > 0:24:23He needed cash, and he needed it fast.
0:24:23 > 0:24:25I turned to payday loans.
0:24:25 > 0:24:29It was... At first, it was £100.
0:24:29 > 0:24:33I thought, "I need this to pay my phone bill, cool."
0:24:33 > 0:24:36And it was so easy, five minutes - done.
0:24:36 > 0:24:38£100 in your bank account within half an hour.
0:24:38 > 0:24:42And that's like winning money at a casino, you know, it's that quick,
0:24:42 > 0:24:46it's that easy, and I didn't read between the lines.
0:24:46 > 0:24:48Because you may be borrowing £100
0:24:48 > 0:24:50but you're going to be paying back 300,
0:24:50 > 0:24:53so it just doubles and triples in price
0:24:53 > 0:24:56and that's when things started to get hairy.
0:24:56 > 0:24:59And it was about four or five weeks later,
0:24:59 > 0:25:01I got a letter through the post
0:25:01 > 0:25:03saying you're in default, you're in arrears.
0:25:03 > 0:25:05And I was skint, I had no money.
0:25:05 > 0:25:07So, then that leads me to think,
0:25:07 > 0:25:09"All right, I'll get another payday loan,
0:25:09 > 0:25:12"just to cover this and then that's it."
0:25:12 > 0:25:14So, I took another payday loan out for £300.
0:25:16 > 0:25:18And I...
0:25:18 > 0:25:21I didn't pay off what I said I was going to pay off with.
0:25:21 > 0:25:23I went straight to the casino.
0:25:24 > 0:25:27It's the whole devil-angel on your shoulder, you've the angel saying,
0:25:27 > 0:25:30"Right, great, use this money wisely, Will,
0:25:30 > 0:25:32"pay off what you need to pay off and stop it there."
0:25:32 > 0:25:35But the devil on my shoulder's saying you've £300 here,
0:25:35 > 0:25:37you could turn that into ten grand tonight.
0:25:38 > 0:25:41I'd say out of the 50 times I went,
0:25:41 > 0:25:44I probably walked away happy, twice.
0:25:47 > 0:25:53In the space of six months, Will took out 12 payday loans,
0:25:53 > 0:25:57adding up to £6,800.
0:25:57 > 0:26:01I was getting around about 25 phone calls a day
0:26:01 > 0:26:04from different loan companies, saying I owe money to them.
0:26:05 > 0:26:08I was getting four or five letters a day
0:26:08 > 0:26:13and around about ten e-mails a day, and the feeling was just crushing.
0:26:15 > 0:26:17I buried it. I stuck my head in the sand
0:26:17 > 0:26:21and I stopped answering the calls, didn't reply to the letters,
0:26:21 > 0:26:23didn't reply to the e-mails,
0:26:23 > 0:26:26buried my head in the sand and I didn't know where to turn.
0:26:27 > 0:26:31At that point, I owed £8,500.
0:26:31 > 0:26:34You couldn't go out the house without thinking about it.
0:26:34 > 0:26:36You can't move.
0:26:36 > 0:26:38Too afraid to reach out for help,
0:26:38 > 0:26:42Will's anxieties turned into depression.
0:26:42 > 0:26:46The lowest point was the day
0:26:46 > 0:26:50that I was actually considering ending it.
0:26:53 > 0:26:55I was on my way to work.
0:26:55 > 0:27:01And I just had a bit of a breakdown, really.
0:27:01 > 0:27:07I had realised how much money I had got to pay back.
0:27:08 > 0:27:13So, I drove up to a local hot spot called Black Rocks.
0:27:13 > 0:27:15It's a really high sort of area.
0:27:15 > 0:27:16I parked with my car.
0:27:17 > 0:27:21I remember sending my family, I sent them all a goodbye text.
0:27:22 > 0:27:26Luckily for Will, his sister got the message
0:27:26 > 0:27:28and tracked him down in time.
0:27:28 > 0:27:32Within two minutes, three police cars came bounding up.
0:27:32 > 0:27:35Three police cars blocked me in.
0:27:35 > 0:27:38I remember the police officer tapped on the window and he says,
0:27:38 > 0:27:40"Are you all right?"
0:27:40 > 0:27:43I said, "No. I'm not.
0:27:43 > 0:27:44"I'm really not OK."
0:27:46 > 0:27:48I said, "I'm in a lot of trouble with money.
0:27:48 > 0:27:49"And I don't know what to do."
0:27:50 > 0:27:53That's when everything
0:27:53 > 0:27:55took a turn up.
0:27:55 > 0:27:59With the help of his family, Will took control of his finances.
0:27:59 > 0:28:03He started by contacting a debt management company.
0:28:03 > 0:28:06Within five minutes, he explained how the process works,
0:28:06 > 0:28:09how they can consolidate all the debt into one big debt
0:28:09 > 0:28:12and how they can start to fix the payment plans.
0:28:12 > 0:28:14So, I went on, signed this agreement.
0:28:14 > 0:28:17He said, "Right, you're going to be paying £103 a month
0:28:17 > 0:28:20"for the next five years and once you have made all those payments,
0:28:20 > 0:28:22"we will settle the rest of the debt."
0:28:22 > 0:28:25I went, "OK. Cool." And that was it.
0:28:25 > 0:28:28And gradually, the telephone calls stopped.
0:28:28 > 0:28:31The letters stopped. The e-mails, they stopped.
0:28:31 > 0:28:32Everything stopped.
0:28:33 > 0:28:34And I could breathe again.
0:28:36 > 0:28:41Entering into an IVA, or Individual Voluntary Arrangement,
0:28:41 > 0:28:45helped Will get back on track with his finances.
0:28:45 > 0:28:48I managed to start opening up saving accounts, putting money away,
0:28:48 > 0:28:50not spending money willy-nilly.
0:28:50 > 0:28:54I haven't been to a casino now since last year.
0:28:54 > 0:28:57I don't plan on going to one any time soon.
0:28:57 > 0:28:58I don't gamble any more.
0:28:58 > 0:29:00I feel good about my life at the moment.
0:29:00 > 0:29:02It's going in the right direction.
0:29:02 > 0:29:04It still takes work, it still takes a lot of hard work,
0:29:04 > 0:29:06but I'll get there.
0:29:06 > 0:29:10It's been a tough journey, but Will says he's learned his lesson.
0:29:11 > 0:29:14Do not ever touch a payday loan with a barge pole.
0:29:15 > 0:29:19No matter if it's 50 quid or £500.
0:29:19 > 0:29:21Don't do it, because...
0:29:22 > 0:29:24..this has been the hardest time of my life
0:29:24 > 0:29:27and I don't ever want to come back to this.
0:29:27 > 0:29:34I will never, for the life of me, ever touch another loan, ever.
0:29:36 > 0:29:37Good boy.
0:29:43 > 0:29:46Short-term loans will always attract high interest
0:29:46 > 0:29:48if not paid off in full.
0:29:48 > 0:29:52And they're a sure-fire way to increase debt problems.
0:29:52 > 0:29:54But there are alternatives.
0:29:54 > 0:29:57Payday loans can seem like a really flexible way
0:29:57 > 0:29:58to borrow a small amount of money
0:29:58 > 0:30:01for a relatively short period of time.
0:30:01 > 0:30:04The key thing is they are a really expensive way to borrow.
0:30:04 > 0:30:07So, although you will be borrowing from a regulated lender
0:30:07 > 0:30:11that is obliged to treat you fairly, they're not the cheapest option.
0:30:11 > 0:30:13There most likely will be cheaper options out there.
0:30:18 > 0:30:22Ethical lenders such as credit unions will always be registered
0:30:22 > 0:30:26with the Financial Conduct Authority and can be checked online.
0:30:27 > 0:30:30Credit unions aren't only about loans.
0:30:30 > 0:30:32They also encourage people to save.
0:30:32 > 0:30:34Always good service!
0:30:36 > 0:30:40Madeline has been a member of Lewisham and Bromley Credit Union
0:30:40 > 0:30:42for the last ten years.
0:30:42 > 0:30:44I was looking for a new way of banking.
0:30:44 > 0:30:45Single parent, I had two children.
0:30:45 > 0:30:48Bye-bye. Next, please.
0:30:48 > 0:30:50It's really just helped me build, I think,
0:30:50 > 0:30:53some security for myself and my family over the years.
0:30:53 > 0:30:57And it's provided a very good support in me gradually building
0:30:57 > 0:30:59from that point to this point,
0:30:59 > 0:31:03to support my family and get a bit of savings behind me.
0:31:03 > 0:31:06- Hello.- Hello.- I'd like to make a withdrawal, please.
0:31:06 > 0:31:07- OK, no problem.- Do you have a pen?
0:31:07 > 0:31:09I'm visually impaired.
0:31:09 > 0:31:12I lost my sight in one of my eyes when I was 20,
0:31:12 > 0:31:13the other one when I was 21.
0:31:13 > 0:31:17I managed to regain the sight back in my right eye, but not in my left.
0:31:17 > 0:31:21Actually, the finances I managed to accumulate with the credit union
0:31:21 > 0:31:27have really helped me with, I suppose, my freedom in society,
0:31:27 > 0:31:31and always having that safety net behind me financially to support me
0:31:31 > 0:31:35when I've had my disability needs.
0:31:35 > 0:31:36There's my ID.
0:31:36 > 0:31:38Thank you, Madeline.
0:31:38 > 0:31:42I do feel very, very supported with regard to my visual impairment here.
0:31:43 > 0:31:45- I've got some 50 notes.- That's fine.
0:31:45 > 0:31:49Madeline built up a pot of money and used her savings
0:31:49 > 0:31:52to take some courses to improve her employment options.
0:31:52 > 0:31:54- Thank you.- 60, 80...
0:31:54 > 0:31:58With regard to my remedial massage therapy and the life coaching,
0:31:58 > 0:32:01it was quite a lot of money to be able to pay for those courses.
0:32:01 > 0:32:04Perfect. Which I think, without credit union,
0:32:04 > 0:32:07I wouldn't have been able to build up that level of finances
0:32:07 > 0:32:09to have done that.
0:32:09 > 0:32:12- Thanks very much. Thank you. Bye.- Take care, bye.
0:32:12 > 0:32:15It's put me in a much better financial position than I was in
0:32:15 > 0:32:17when I originally joined.
0:32:17 > 0:32:21Because credit unions are run as a community cooperative,
0:32:21 > 0:32:26staff can treat individuals on a personal case-by-case basis.
0:32:26 > 0:32:27Have you got some ID?
0:32:27 > 0:32:31And this is especially helpful for people with poor credit ratings.
0:32:31 > 0:32:34Never checked it. Not even thought about it.
0:32:35 > 0:32:37I tried to explain that to you the other day, didn't I?
0:32:37 > 0:32:41- I'm still confused. - Everybody has to have
0:32:41 > 0:32:44hire purchase to get on the ladder, to get credit.
0:32:44 > 0:32:46A better credit score history,
0:32:46 > 0:32:49got better chances of getting real estate.
0:32:50 > 0:32:54Having a poor credit history can make it difficult to get a mortgage
0:32:54 > 0:32:55or borrow money.
0:32:55 > 0:32:58And if you've moved here from abroad,
0:32:58 > 0:32:59life is even tougher,
0:32:59 > 0:33:03as you are deemed to have no credit history at all.
0:33:03 > 0:33:05If you're from outside the UK,
0:33:05 > 0:33:09credit histories and credit checks do not cross international borders.
0:33:09 > 0:33:10That is the same around the world.
0:33:10 > 0:33:13So, it doesn't matter what your circumstances are,
0:33:13 > 0:33:15you could be rich, poor,
0:33:15 > 0:33:17you could have taken many loans in the past or never,
0:33:17 > 0:33:21if you have only done that activity outside the UK,
0:33:21 > 0:33:24it's the same as having no credit history at all in this country.
0:33:24 > 0:33:27That is a hindrance to getting credit, no doubt about it.
0:33:30 > 0:33:34When computer specialist Ignis from Lithuania settled in Britain
0:33:34 > 0:33:37with his family in 2014,
0:33:37 > 0:33:41he had no reason to think he would have a problem with his finances.
0:33:41 > 0:33:44I have a lot of experience as a software engineer.
0:33:44 > 0:33:48So, for me to find a job anywhere is quite easy.
0:33:48 > 0:33:52I can demand a good salary to be able to support my family.
0:33:54 > 0:33:58Ignis soon found a job and a home for his wife and children.
0:33:58 > 0:34:00There we go, Lucas.
0:34:00 > 0:34:03But establishing the family ate into his savings.
0:34:05 > 0:34:09I didn't have a lot of capital when I moved here.
0:34:09 > 0:34:16And moving reduced my savings, so I had to look for credit.
0:34:16 > 0:34:19I'm just going to put the safety belt on.
0:34:20 > 0:34:24Ignis was in desperate need of a loan to buy a car.
0:34:24 > 0:34:29But quickly realised his credit rating wasn't recognised in the UK.
0:34:29 > 0:34:33Because of my lack of credit history in the United Kingdom,
0:34:33 > 0:34:38I hadn't had much other options in terms of borrowing some money.
0:34:38 > 0:34:42I get a good salary, but sometimes when my savings get low,
0:34:42 > 0:34:45I also need to borrow from somewhere.
0:34:45 > 0:34:49I wasn't able to get credit from the banks.
0:34:49 > 0:34:52It was vital for Ignis to get a car quickly.
0:34:52 > 0:34:57His two sons, Lucas and Rochus, have special needs,
0:34:57 > 0:35:01and driving them to school helps to reduce their stress.
0:35:01 > 0:35:05Routine and following the rules
0:35:05 > 0:35:09is critical for people with autism,
0:35:09 > 0:35:14because if routine is disrupted, they can go into panic mode
0:35:14 > 0:35:17and it's not easy to calm down from the panic mode
0:35:17 > 0:35:20when you have some challenges with communication.
0:35:22 > 0:35:24We had a lot of tears on Monday.
0:35:24 > 0:35:25The same kind of process,
0:35:25 > 0:35:29where he calms down and then it gets to break time and he goes outside.
0:35:29 > 0:35:32He's got that transitionary time and he remembers again,
0:35:32 > 0:35:33he's upset again.
0:35:33 > 0:35:36It's a really hard day.
0:35:36 > 0:35:38But as a recent immigrant,
0:35:38 > 0:35:41it was almost impossible for Ignis to get a loan.
0:35:42 > 0:35:46When we learned that we couldn't get a loan from a regular bank,
0:35:46 > 0:35:51it felt overwhelming because we didn't really know what we can do.
0:35:51 > 0:35:53In desperation,
0:35:53 > 0:35:56he started searching for advice online
0:35:56 > 0:35:59and came across information about credit unions.
0:35:59 > 0:36:03I looked up what kind of credit unions were available
0:36:03 > 0:36:07and I found that, because my work, my job was in Southwark,
0:36:07 > 0:36:11I was eligible for London Mutual Credit Union.
0:36:14 > 0:36:20Lucky, the manager of Ignis's local branch, processed his application.
0:36:21 > 0:36:24Ignis is one of the typical members that we have.
0:36:25 > 0:36:29Wanted some money, but he can't borrow money from elsewhere.
0:36:31 > 0:36:33We always sympathise with our members.
0:36:33 > 0:36:38We find a bit more about the members, including the income,
0:36:38 > 0:36:41the credit checks and also their family circumstances.
0:36:42 > 0:36:46After assessing his ability to repay a loan,
0:36:46 > 0:36:49the credit union offered Ignis the money he needed
0:36:49 > 0:36:52to get his son safely to school.
0:36:52 > 0:36:55So, I was able to borrow £3,000.
0:36:55 > 0:36:58With that money, I was able to buy this car.
0:36:59 > 0:37:01His income was good.
0:37:01 > 0:37:06So, we thought it's a good reason to apply for a loan,
0:37:06 > 0:37:09and a good reason for us to grant that loan.
0:37:09 > 0:37:14So, the nice thing about this car, it has the children-safe door locks.
0:37:14 > 0:37:18So, for my kids, because they don't fully understand,
0:37:18 > 0:37:21you have to do everything possible to keep them safe.
0:37:23 > 0:37:27Without the credit union's help, I wouldn't be able to afford this car,
0:37:27 > 0:37:30that reduced stress on me and my family.
0:37:32 > 0:37:34With their transport needs met,
0:37:34 > 0:37:37the children now have a settled routine
0:37:37 > 0:37:39and are making good progress at school.
0:37:39 > 0:37:43You can see he is actually trying to do some joined-up writing now.
0:37:43 > 0:37:47OK, so he is keeping the finger spaces as well.
0:37:47 > 0:37:51Yeah. After a week, he's kind of picked it up really quickly.
0:37:51 > 0:37:54Education is really important for my children.
0:37:54 > 0:37:58We don't want our kids to grow up and just, you know,
0:37:58 > 0:38:01stay at home and collect benefits and those things.
0:38:01 > 0:38:06We want them to find a job and be productive members of society.
0:38:06 > 0:38:08Train! Crashed!
0:38:09 > 0:38:13Ignis now has big dreams for his children's future.
0:38:14 > 0:38:18My hopes are that the boys will be able to go to university
0:38:18 > 0:38:22and be able to enter higher education, and that they will
0:38:22 > 0:38:25be able to get a job, and just build a family,
0:38:25 > 0:38:29to enjoy life and not have to struggle every day.
0:38:31 > 0:38:34- I win.- No, I win!
0:38:34 > 0:38:36We both win.
0:38:38 > 0:38:42One of the largest credit unions in the UK is London Capital,
0:38:42 > 0:38:46which traces its roots back to 1962.
0:38:46 > 0:38:49- Good morning. Would you like to come over, please?- Yes, please.
0:38:49 > 0:38:51I love to see people coming to the credit union
0:38:51 > 0:38:55and just to say to us what we've done for them.
0:38:55 > 0:38:58We sometimes have people who have never saved before.
0:38:58 > 0:39:02And after a period of time, they can look in their accounts and say,
0:39:02 > 0:39:04"Can I see what's in my savings too?"
0:39:04 > 0:39:08And they may have £1,000 in there. And they've never saved before.
0:39:08 > 0:39:11- Thank you.- Thank you. Bye!
0:39:12 > 0:39:14The credit union is open to anyone who lives,
0:39:14 > 0:39:16works or studies in the area.
0:39:18 > 0:39:21And Helen has been a member for three years.
0:39:21 > 0:39:24She's on her way to apply for a loan.
0:39:24 > 0:39:27I need to do some maintenance in my home.
0:39:27 > 0:39:29I'm applying for £1,000.
0:39:29 > 0:39:36Basically, just buying furniture and having the new flooring in.
0:39:36 > 0:39:40A home makeover isn't the only reason that Helen needs help.
0:39:40 > 0:39:44I had a very high interest loan from another company.
0:39:44 > 0:39:47With this loan, I could actually pay off that loan
0:39:47 > 0:39:50and new furniture in, and new flooring.
0:39:50 > 0:39:55So, that would be great, you know, spirit lifted up around the home.
0:39:55 > 0:39:58It's nice to get rid of the old and in with the new.
0:40:00 > 0:40:03Manager Martin Groombridge is Helen's loan adviser.
0:40:07 > 0:40:08- Hello.- Hello, there.
0:40:08 > 0:40:11- How can I help you?- I'm just here to apply for a loan.
0:40:11 > 0:40:14OK. That's smashing. Can I have your membership number, please?
0:40:14 > 0:40:18Yes. It's on the paper here.
0:40:18 > 0:40:20OK, that's smashing.
0:40:20 > 0:40:22Let's have a look.
0:40:22 > 0:40:26- You've got bank statements with us? - I have.- That's smashing.
0:40:26 > 0:40:29- What was the purpose of the loan? - It's for maintenance.- OK.
0:40:30 > 0:40:33And pay off another loan?
0:40:33 > 0:40:34Martin can see immediately
0:40:34 > 0:40:37that paying off the higher interest loan
0:40:37 > 0:40:39will put more money in Helen's pocket.
0:40:39 > 0:40:41That certainly makes sense.
0:40:41 > 0:40:44So, you're going to be better off each month
0:40:44 > 0:40:48simply by paying that loan off with a credit union loan, aren't you?
0:40:48 > 0:40:49That certainly makes sense.
0:40:53 > 0:40:55If you'd just like to take a seat over there, Helen.
0:40:55 > 0:40:58- I'll draw the document up for you. - Thank you.
0:40:59 > 0:41:01See you in a moment.
0:41:01 > 0:41:04Before deciding whether Helen can have her loan,
0:41:04 > 0:41:07Martin needs to work out if she can afford her repayments.
0:41:07 > 0:41:10The purpose of the loan is to repay certain things
0:41:10 > 0:41:12that have gone wrong about the house.
0:41:12 > 0:41:16But also to clear up a loan from a high-interest lender
0:41:16 > 0:41:20and we'll reduce her monthly payments from £120 a month
0:41:20 > 0:41:22to £75 a month.
0:41:22 > 0:41:23Actually, it'd be more than that
0:41:23 > 0:41:26because she's already paying £50 a month anyway.
0:41:26 > 0:41:30So, effectively, she's going to be paying an extra £25 a month
0:41:30 > 0:41:34to clear a loan that she's currently paying £120 a month.
0:41:34 > 0:41:36So, she's going to save a lot of money
0:41:36 > 0:41:40and make a significant difference to her monthly income.
0:41:40 > 0:41:43It doesn't take Martin long to reach a decision.
0:41:43 > 0:41:45OK, Helen, would you like to come on over?
0:41:46 > 0:41:49I'm pleased to tell you the loan's been approved.
0:41:49 > 0:41:51Very speedy.
0:41:51 > 0:41:53Hopefully, what we'll do, once we've got this,
0:41:53 > 0:41:55I'll give you the original documentation back.
0:41:55 > 0:41:57The loan's been approved, this money will be sent
0:41:57 > 0:42:00- to your bank account later today. - Thank you.
0:42:00 > 0:42:03I'll find you an envelope to pop it all in to keep it together.
0:42:03 > 0:42:05- Thank you very much. - Cheers, Helen, take care.
0:42:05 > 0:42:07Nice to see you again. Bye.
0:42:08 > 0:42:11The loan decision will free up extra cash,
0:42:11 > 0:42:14so that Helen can spruce up her home.
0:42:14 > 0:42:19I'm very pleased that it's been approved very speedily.
0:42:19 > 0:42:22Knowing that my money will be there in the account,
0:42:22 > 0:42:24in just a couple of hours, is very good.
0:42:24 > 0:42:27I'm really, really excited about that.
0:42:27 > 0:42:29So, I'll do my shopping!
0:42:33 > 0:42:37Since our filming, Marion's dog spa
0:42:37 > 0:42:40has a raft of new four-legged clients.
0:42:40 > 0:42:44And as a result, she's taken on another apprentice.
0:42:44 > 0:42:47Building up what we want the business to look like
0:42:47 > 0:42:49is a great feeling.
0:42:50 > 0:42:53And Ignis has paid off his loan.
0:42:53 > 0:42:57Thanks to having a car, his boys are now doing well at school,
0:42:57 > 0:43:03with vastly improved performances in reading, writing and maths.
0:43:03 > 0:43:06My hopes are that the boys will be able to go to university
0:43:06 > 0:43:08and enjoy life every day.