Episode 13 A Matter of Life and Debt

Every day, all over the country, millions of people

are struggling to find the cash they need

to make ends meet, or to realise their dreams.

Applying to get a top-up on my loan.

50, 60, five.

-Thank you, Lisa.

-OK.

We are looking to offer you a loan.

Many struggle to qualify for high street borrowing,

making them vulnerable to illegal loan sharks.

Looking back now, I realise the APR for that loan was nearly 800%,

which is...

But there are a growing number of community banks or credit unions

that are offering a helping hand,

while at the same time supporting the local area.

The confidence and the support I received

empowered me to think bigger.

From household emergencies to kick-starting a new life or business...

She started from zero and she became a hero.

It's such an amazing story.

Very crazy, but here we are.

..we're following some of these life-changing stories.

We wouldn't have been able to set it up like this if we didn't have that loan.

It basically meant that something that I never thought I'd ever do

in my life was actually going to happen.

Dreams can come true with a bit of hard work and financial assistance.

If I didn't get that done, then this wouldn't have been possible.

So it's a win-win situation, really.

-Come on.

-Today,

a mum who paid the price for sticking her head in the sand.

I was ignoring the bills and then, finally, I opened them,

and my house had been repossessed.

Hi. Good morning.

-A school assistant helps her pupils squirrel away their savings.

-Hello.

Hi.

Our children absolutely love it,

they enjoy it and they can't wait for a Friday morning to come in with their savings.

And a loan helps a pet fanatic turn his love of lizards into a thriving business.

Absolutely obsessed with dinosaurs, so pretty sure that's where my love for reptiles has come from.

How can I help you?

I've come to pick up my loan.

Most of us rely on some sort of credit.

From quite a young age, I was relying on credit cards,

and just continued throughout my 20s and kind of free-fall.

Almost felt ashamed and out of control. You keep your debt to yourself,

it's something you kind of quietly deal with behind closed doors.

With unsecured debt in the UK approaching £200 billion,

borrowing has become a part of daily life for many.

Unfortunately, utilities are going up, food's going up,

the only thing that doesn't seem to be going up is my salary.

People with low incomes or bad credit ratings can find it difficult to borrow from traditional lenders.

Some turn to payday loans or illegal money lenders,

where a small high interest loan can soon spiral out of control.

I knew there was absolutely no chance

of any of the high streets banks giving me any money whatsoever.

It took my wife and children away.

It took the house I owned.

It took my job.

But there is another way to borrow.

A growing number of responsible lenders are trying to help.

Lanarkshire Credit Union, Maggie speaking.

Credit unions have been lending money responsibly and encouraging people to save for over 50 years.

Our rates with that 160, then,

you can look at having the majority go to your loan

and still be able to split it, so you have some going to your savings.

-Savings as well.

-So you've still got that build up of emergency fund.

Together, these not-for-profit community banks

have almost two million members

and £1.25 billion out on loan.

We are basically here to help the community.

We are for the people that maybe the high street banks feel are too much

of a risk. So we are willing to take that risk with these members

and see, and hopefully, like, maybe rebuild their financial history

as a whole.

School assistant Megan has been sent here today

on a very important mission

by the pupils in her local primary.

I'm here this morning because I work in a local primary school

and about five years ago,

a credit union came into the school and they introduced a savings scheme

whereby the children could pay in as much or as little as they can.

I'm here this morning to pay in the collection I've collected from the children.

The London Mutual Credit Union plays an important role

in its local community by joining forces with schools

to teach the importance of good financial management from an early age.

We think the junior savers are our next generation of our membership.

We want the young children to save money

and then buy the things they want,

rather than borrowing money to buy the things they want.

We have about 250 children in our school, it's a very small school.

This has been collected now for about seven weeks,

and the children have been putting in anything from £2 to £5, £10.

It depends on how much spending money they get each week.

-Hello.

-Hiya.

I have collected so far £620.

And this is...

what it looks like.

-So that's how much, 620, yeah?

-620.

Our children absolutely love it.

They enjoy it and they can't wait for a Friday morning

to come in with their savings.

My grandson, he's saved £1,240, from Grandma, Grandad,

birthdays, Christmas,

and his dream is to buy a fancy car when he gets older.

All done. All right. Thank you.

-All right, thank you.

-See you.

It is absolutely necessary to encourage all children to save

because then it gives them boosts later on.

They also know about finances and how they should be cautious

with spending money. It's really lovely, actually.

We have great fun.

It looks like these young savers have bright financial futures ahead of them.

People borrow from responsible lenders for all sorts of reasons.

I need a settee and two wardrobes.

I need money for inflatables and party bags and that sort of stuff.

I'm here to get a loan to have a nice holiday for me and my three boys and my husband.

Across the country there are 55 community-based lenders

that specialise in business start-up loans.

They offer credit to would-be entrepreneurs

who would find it difficult to borrow on the high street.

When I wanted to go for a loan,

I didn't choose a high street bank because I feel like banks

cater to themselves and not to the borrower's needs.

They are interested to see you grow, your business grow,

and have that impact on the community.

That's 13.48, please.

To be taken seriously and be looked at as an individual,

that makes all the difference.

-Hold it?

-Do you want to hold it?

When Brett wanted to get his business off the ground,

he turned to not-for-profit lender Lancashire Finance.

Brett runs a pet shop in Chorley.

If you're looking for four-legged friends,

you'll find a lot more than just cats and dogs here.

This is Zeus, an Argentine black-and-white tegu.

He's absolutely brilliant. We treat him like a little dog.

He's our shop dog, aren't you, mate?

He's free to do what he wants. He's very solar-powered,

so three or four hours under his lamp and he'll be scratching at his glass, wanting to come out,

so we let him out, let him roam round the shop for a while.

If it's warm enough, he'll help himself outside.

People literally stop in the street, cross the road to stroke him

and take pictures of him.

Brett's love of animals started as a boy,

when mum, Sonia, brought them home from the vet's where she worked.

Everybody brought the waifs and strays to the house,

and we hand-reared hedgehogs and baby birds and rabbits,

and, you know, there's no such thing as a day off.

We've hand-reared kittens, ducklings, bats, you know,

all the weird and wonderful things. I've been always around animals

and I've not realised it until I was older.

I just felt that was the norm, everybody had pets in the house.

That's what I thought it was.

It was the weird and wonderful that really interested the young Brett.

I was absolutely obsessed with dinosaurs,

so I'm pretty sure that's where my love for reptiles has come from.

Preparing food for about 16 different reptiles.

We do this every morning, chop them up fresh.

Knowing how much Brett loved lizards, one Christmas,

Brett's mum, Sonia, bought him a pair of bearded dragons.

We got told they were two females

and it turned out to be male and female.

That's when we got the first clutch of 28 eggs.

Didn't expect a lot of eggs to hatch, but all 28 hatched so we soon became overrun with them.

Brett needed a plan

and he needed it fast.

Couldn't just leave 28 dragons in my room.

When they get bigger, they all need their own enclosures

and it weren't physically possible to house 28 single reptiles.

His solution was to commandeer a space in the family home,

which became known as the reptile room.

I've got eight tanks off eBay,

they were just run-down old fish tanks with cracks in or weren't sealed or anything,

so after that, we converted them all into reptile tanks and that's where the reptile room came from.

The reptile room at home has got bigger and bigger and bigger and bigger.

Having the reptile room, that's when my family were coming round and said,

"You want to put a sign on the door saying it's called Brett's Pets,"

and that's literally where the name came from.

That's when we decided we needed a premises to sell them from,

that's how the shop started.

Brett needed money to set up shop.

His first thought was to borrow from a traditional lender.

When we first started looking to borrow money, we went to the bank.

We weren't happy with the percentage and stuff,

we ended up paying back a lot more.

Then Brett heard about Lancashire Community Finance,

a not-for-profit lender helping local people start up businesses.

Its manager is Elaine Rimmer.

With our start-up loans, we work with the clients one-to-one,

it doesn't get fed into a computer,

we look at every aspect of the business

to ensure that that business has got a really viable chance of surviving.

Brett impressed us with his knowledge of the creatures he was looking to breed,

and also, the wider range of pets and animals.

These are little chameleons, so their tongues are like two,

three times their body length so they can catch bugs off the floor whilst they're in the trees.

They seek cover and safety and height.

-They're amazing. They can change colour with the different pigments in the skin.

-Very cool.

I think it was that passion for his subject matter. He was nervous,

he was young, but he had this inner steel and inner confidence.

Whilst they're young, we don't put water bowls in just for the risk of drowning,

if their siblings stand on each other's heads,

so we spray them gently to replicate the rainfall, really, and they all just go down, have a drink.

Keeps them hydrated.

I didn't think it was going to work but the more people we spoke to, the more they told us it would work.

With money from his parents

and an £11,000 loan from Lancashire Community Finance,

Brett set about finding suitable premises.

Quite exciting, but to be honest, we just got on eBay, got shelves,

you know, carpets, we painted the entire building.

We loved our first little shop.

We really enjoyed it.

We started off with a little pet shop where I did veterinary nursing

services, so that was something we wanted to do because it was a unique selling point with a pet shop.

And we also bred our own animals, so nothing was interbred or overbred.

Thanks to the ethical loan and the support of his parents,

Brett's Pets had become a reality.

I've never had experience running a business.

I was working in a petrol station and shops and stuff,

so I was used to cash handling, tilling up and things like that.

We didn't have any customer service training or anything like that,

we just kind of all jumped in at the deep end.

I've got two different ones, there's ten,

there's a special offer on them as well, or there's the 43.

Which are these? Petite?

Yeah, they're both petite, these ones.

Those would be better, the small ones.

Yeah, two to seven.

Three years later, Brett's business had outgrown its premises.

As we progressed, a couple of years down the line,

we noticed the profits going up

and then they just kind of flatlined, so we knew that was the limit of that building,

we knew that was all it could provide.

Finding a new shop opened up a whole host of opportunities.

We were looking for bigger premises for the shop and we walked in here,

because it was up for rent at the time,

and I remember Brett walking into the back,

this was all a storage area at the time,

he said, "Look at all this storage."

It was like, "I can make a vet's in here," so we went from being...

doing vet nurse services to literally planning,

project designing the whole vet's.

So I left him to run the pet shop and I run the vet's.

Can't get away from me, can you, poor kid?

We're pet lovers, we're not businesspeople,

we're just pet lovers and fellow pet lovers come into the shop.

Unbeknown to Brett, the staff at the community bank were watching his progress.

Brett is a shining example of one of our success stories.

We have tried to remain very much based in the community

and following our original roots.

Earlier this year, we nominated him for a responsible finance award

in the under-25 micro entrepreneur section.

At a glamorous awards ceremony,

the family discovered that Brett's Pets had won the title.

When we actually won it,

walking up there, my heart literally fell out of my chest.

Walking up to collect that in front of all of those people was just mind-blowing.

Brett was delighted to win this award,

which with it came a prize of £6,000,

which he now has invested in his business.

Hello, little fellow.

Oh, look at that.

That is beautiful, that.

It's really lovely for us to be able to see that a young man who approached us

in 2013 is now running such a successful business.

Since then, the pet shop has gone from strength to strength.

Responsible lenders don't just offer loans, they also encourage saving.

Hi. Good morning.

The number of Brits putting money aside for rainy day

is at its lowest level in over 50 years,

so encouraging people to save

is an important part of a credit union's role.

We encourage our members to save while they are paying the loan,

it's just how the credit unions work.

We had a number of members who are surprised to see the amount they saved every month.

Hello. How are you?

-Hi. Morning.

-Hi.

Someone well-practised at paying money in rather than taking it out

is Etta.

I came in to put some money into my savings,

and I also would like to put some money into my current account.

Etta's been a member of London Mutual for five years.

I think the credit union is really good.

-OK. There you go.

-Thanks.

Thank you very much.

When you come here on an every day basis,

I think staff know their customer and get to know you well.

How much are you paying in?

I'm paying into my saving 350.

OK. Thank you.

I am able to save and do things that normal banks do,

so I'm quite happy here.

-Check and sign that for me and that's gone in straightaway for you.

-Thank you.

-Thank you very much.

-That's OK.

-Have a nice day. Bye.

-Bye.

-Morning.

-People often call on the credit union when unforeseen

circumstances leave them short of money.

Like mum Nicola.

I just wanted to apply for a loan.

-I've just got to log in for that for you, OK?

-Yeah.

I need a new fridge.

It's just on its way out. I've had it for about ten years, so I need a new one and my son broke his bed.

OK, how much would you like to apply for?

I wanted to apply for a thousand.

Right, the most they're offering you is 100.

-Eight?

-100.

-Is that it?

-Yeah. You can appeal against it.

They just offered me 100, which is not going to...

it's not enough, so I just declined it.

-Thank you.

-All right, thanks.

-See you, bye.

At the credit union, we would love to offer everyone that applies for a loan the full amount,

but we have to look at it at a point of view where we're trying to get them out of problems,

so we're trying to give them a loan, yes,

but also give them an affordable loan they can repay comfortably.

Unfortunately, Nicola's still paying off an existing loan, so the credit union can't help her out today.

Still to come -

a grandad seeks a loan to take his grandkids on holiday...

It's my grandchildren's first and second birthday.

If they are good to me today, I will be eternally grateful.

..the mum who tried to borrow her way out of debt...

I had a mortgage to pay and I had no income.

The rug was being pulled from underneath me and I didn't know what to do.

..and after being treated for cancer,

one woman takes a loan to train as a nurse so she can help others.

Without the credit union,

it wouldn't have been possible to take that first initial step

and to give the university the money to get on to the course.

For many of us, a mortgage is the biggest loan we'll ever take out

and with the average house price at over £200,000,

the thought of paying it off can be daunting.

My biggest money worry would be paying the mortgage.

I was lucky enough for my parents to have put some money aside for me

and so they were able to offer me money to give me a deposit,

which was obviously a lot of security, getting on the property ladder.

We thought by buying a home,

it would be a good idea and it's security for the future.

One of the biggest problems is taking on a mortgage

that's only just affordable,

as money expert Caroline Hamilton explains.

We know from our research that three-quarters of first-time buyers

had to stretch themselves to be able to buy their property.

One in five first-time buyers actually find themselves in financial difficulty.

At the time that you buy a property, you've probably already drained your savings,

you're trying to furnish a new home, so your savings are low but your costs are high.

That can leave you really vulnerable to financial shocks.

We also know that rates will rise at some point.

So, when planning your mortgage,

just think about how you might cope if...

when interest rates start to rise.

-Come on, Dot.

-57-year-old Sue knows only too well the cost of overstretching on a mortgage.

With all the repossessions and all of the legal costs,

I would say in total £260,000, with properties that I lost and everything.

I was very financially naive.

I didn't really know what the consequences were.

Sue enjoyed a sheltered upbringing in rural Wales

and never learned how to manage money properly.

I remember asking, I must have been about seven, eight,

if you ever asked what things cost,

my dad would always say, "That's not for little girls to worry about."

I had absolutely no idea about bill paying, budgeting...

I think it was just assumed that I would marry quite well.

In her 20s, Sue married and started a family.

I met my husband when I was 18.

His father worked for the firm that my father was a director of,

and doing very well financially.

There was always cash.

I had two children very close together and I think I was suffering from postnatal depression,

and finding life, physically, quite increasingly hard

and deciding that actually, life would be easier without my husband.

In your basket. Come on.

So I thought I'd cope better on my own.

Looking back, that probably was not the best decision I've ever made.

In 1986, Sue ended the marriage.

She had two young children

and decided the solution to her financial needs was property.

Somebody had told me about two flats that were on the market.

I didn't know much about property prices,

but they seemed to me to be very cheap

and I could live in one and rent the other one out.

Sue thought the rented-out flat would give her an income

and a way of providing for her children.

But things didn't go according to plan.

I just wasn't very good at getting that rent,

and I just knew I was too close and I needed to move out.

Eventually, Sue put both flats on the market and found a buyer.

While she was waiting to exchange contracts, she went ahead and bought a new family home.

But then the flat sale fell through.

The person who was buying my flat didn't complete,

she exchanged contracts

but she never actually came up with the money.

Now Sue had three properties on her hands

and desperately needed to sell the flats to pay for her new house.

By then, actually, the bottom was dropping out of the property market.

I had to auction them.

The sum of money that came out of the auction

didn't even cover what I owed the solicitor.

The rug was being pulled from underneath me

and I just didn't know what to do.

While Sue struggled with her household finances,

the bills continued to mount up.

You deal with each thing as it lands on the mat,

until there are too many things on the mat.

In those days, they could cut your water off if you'd not paid your water rates.

That was absolutely awful.

If you can't even flush your toilet or boil the kettle

or your children have a bath or shower,

I can't tell you how that feels.

As well as unpaid bills, Sue was racking up mortgage arrears.

I was ignoring the bills and...

then finally, I opened them and my house had been repossessed.

Sue's ex-husband stepped in and paid off her arrears,

allowing Sue to start again.

Needing somewhere to live, Sue went ahead with buying another property.

But once again, she struggled to cope.

The time that most people would think should have been

the best years of their lives, I didn't know where my next...

..where my next penny was coming from.

I was juggling the bills, again, and getting deeper into debt.

On paper I thought I could do it, but I couldn't

and that house was again repossessed.

And I had to ask my son would he live with his father.

He was 17 and I was exhausted.

To pay off what she owed, Sue had to take on a second job

as well as consolidating her debts with a loan.

Eventually, Sue was debt-free

and with her children now grown up,

she was also footloose and fancy free.

To be debt-free was lovely.

I backpacked all round South America

and found that actually I didn't need a house, a nice house,

I didn't need all of those things

that I'd felt that I'd lost or could have had.

I'd been on my own for 22 years by then,

and then I met a man who was amazing.

We got married.

Between the two of us, we continue to work really, really hard

and it's paid off.

I've got an absolutely squeaky clean credit rating

and it's like I wear it like a halo.

Now Sue works at her local credit union.

Hi.

Trying to help people avoid the financial pitfalls she fell into.

Are you still with the old bank or not?

I've been there, I've known what it is like to have no respect

from anybody because you've got no money and no access to anything,

and having to be living from pound to pound.

You're welcome, bye-bye.

What happened to me could, I think, happen to anybody.

Over 7,500 homes were repossessed last year.

Experts say the last thing you should do is bury your head in the sand.

The quicker you talk to your lender, the better.

Lenders are obliged to treat their customers fairly,

that's a requirement by their regulator, so if you are struggling,

then it's definitely worth having that conversation with them,

to let them know you might have a problem.

Ultimately lenders want their money back,

so they want you to repay that money,

and even if it means you take slightly longer and pay them slightly more in interest, you know,

them having the confidence you'll pay that money back is the important thing.

If you have started to fall behind on payments,

there are things that you can do,

your lender will want to negotiate with you and work with you

to bring the payments back up-to-date,

but if you want some help to plan that conversation,

know what your rights are and even work out what you can afford to offer your lender.

You might want to speak to an independent debt advice specialist.

There's details of lots of free, high quality debt advice

organisations on the Money Advice Service website.

Just because you're starting to fall behind on your mortgage doesn't mean to say you'll lose your home.

There's lots of things that can be done.

So if you think you may struggle, speak to them, pay what you can

and see if you can come to some kind of arrangement.

I think the key thing is, as soon as you think you might be having money

worries, is getting a handle on your budget, sorting out your spending,

stopping any unnecessary spending

and focusing on paying down the money that you've borrowed

is really key and, of course, there is free debt help out there.

Get it if you need it.

Credit unions and community banks try to help people who struggle

to borrow through the traditional routes.

Hello. Can I help you?

I'm applying to get a top-up on my loan.

Because they look into all aspects of an applicant's history and situation, a poor credit rating,

low income or being on benefits doesn't necessarily mean someone can't borrow money.

Some people do have a really good credit scoring,

but we know the majority don't, otherwise, they wouldn't be here.

Yes, we do look at their repayment history elsewhere

with other lenders, but as long as someone has a good history with us,

nine times out of ten we can help them out.

51, 53.

To become a member of a credit union, you need to live,

work or study in the local area.

London Capital Credit Union, how can I help you?

In the case of London Capital, that's anyone in north London.

Could you confirm your address, please?

One of the oldest credit unions in Britain,

they have been helping local people since the 1960s.

I love to see people come into the credit union and just to say to us

what we've done for them.

I'm pleased to tell you the loan's been approved.

I notice on your bank statement that there's debt management

-for £15.

-That's right. It's been paid off now.

It's been paid off?

I love to work with people who have problems,

because, you know, I've been there before when I was younger.

I was in debt when I was much, much younger, like, in my 20s.

Sometimes you don't know the value of money and you spend,

so I've been in situations and I've worn that shoe before

so I can understand and I do have a pity for them.

One member hoping for a small loan today is doting grandfather Antony.

We want to go on holiday to Spain,

plus, it's my grandchildren's first and second birthday.

Antony has been saving with the credit union for over ten years.

I've always found them very fair and the money's always been there when I've wanted it.

The average UK family spends over a month's salary on their summer holiday.

For many, it's their biggest annual outlay.

If I didn't get the loan today, I would be very upset,

but if they are good to me today, I will be eternally grateful.

It is up to manager Martin to decide if Antony can have his loan.

Right. Who's next, please? Hello, Antony, how are you?

-Not too bad.

-Good. Keeping well?

-Yes, very well.

-Good.

-What brings you in?

-I'd like a loan.

OK. What are you applying for?

-£2,000.

-£2,000.

Okey dokey.

What is the purpose of the loan?

It's a holiday and notable birthdays.

Which notable birthday?

My grandchildren's first and second.

Oh, lovely. I thought it was going to be one of your biggies.

I was going to tease you about it,

but there you go. OK.

Great stuff. Let's have a look. You've got all the forms filled in.

You know what to do.

-I do.

-OK.

You're increasing the payments a little.

-I am.

-That will help you to keep the interest down.

OK, I'll just go through this while you wait, actually,

-if that's all right?

-No problem.

Here's your account.

You can see you've got quite a sizeable sum of savings there, which is always nice.

-Still in the same job?

-I certainly am.

Okey dokey. Right.

I just need to go through your bank statements.

Just as a thought, your credit cards,

both very expensive compared with us,

so if you've got a balance, you might want to talk to us about transferring.

-No problem.

-We'll save you some money on that.

Just take a seat over there.

-Thank you very much.

-Take care.

Martin now needs to crunch the numbers.

It's a sizeable sum but not unusual for us to do this.

All the loan applications,

we just have a quick look at his track record with ourself,

we also make sure that we have a look at affordability.

The key thing is about affordability.

We don't want to encourage people to borrow when it's not affordable

and we want to try and see people building up their savings so they borrow less.

This is a classic case of where somebody's been using...

transferring debts from other places

and has built up a sizeable sum of savings for the future.

I just now need to get somebody else to have a look at this loan

because it's over my personal approval limit.

Anthea, could you just have a quick look?

It's slightly over my limit.

OK.

Antony will have to wait a little longer to see if he'll be able to borrow the money.

Across the UK, credit unions operate as financial co-operatives

built on the efforts of volunteers.

Each have their own personal reasons for being there.

The reason I wanted to start helping out is that

I didn't want other people to do what I did,

and if I can help people by not getting into that situation,

even one person,

for me,

it's helped someone else

not do what I did.

I knew where I was at

was a bad place and the credit union was a very good idea.

I couldn't do a lot about where I was at in some ways, but I could do something.

I saw it as a long-term investment in myself and for others.

At the moment, you've got 867 in your savings.

46-year-old Kate started volunteering at her local credit union in Glasgow ten years ago

when she lost her job.

I have been volunteering on and off for around ten year now

with the credit union.

It's definitely helped me with my confidence,

learning to meet people in my community, and the people that work at the credit union

I consider to be my friends.

She was soon back in work, but Kate carried on volunteering.

Then in 2014, her life was turned upside down.

I was 44 when I was diagnosed with breast cancer in October 2014.

And started six rounds of chemotherapy,

mastectomy and reconstruction and three weeks of radiotherapy.

Can't really praise the doctors and nurses and the support team enough.

So they never let you think you are facing it on your own, so, yeah.

Amazing.

Kate had to give up work while undergoing treatment.

It was during this time she was inspired to follow a new career in nursing.

I'd lots of time to reflect on the direction my life was going in.

My gran had nursed prisoners of war that came out of Belsen,

one of the Nazi death camps during the Second World War.

I knew that she'd done a lot of fairly heroic things, which is always

inspiration when you hear stories like that.

To work as a nurse, Kate needed a nursing degree.

Before she could be accepted to do that,

she had to pass what's called an access course in biology and chemistry.

In order to fund the course, I had to find £400 to pay the fees,

which is quite a lot of money to consider spending on any one thing at a time.

Having not worked for several months, money was tight,

so Kate turned to the credit union for help.

I was aware that as long as I had been paying regular amounts into the

credit union, then you can borrow up to double what you have saved

and pay it back over whatever period of time's necessary,

with very little interest added on.

It was credit union worker Tammy Barrett who came to Kate's assistance.

We were Kate's only option.

She had been ill, she had been unemployed and there was nowhere else she could have went,

and when we had a look at what Kate had and decided, yeah,

we can do this for you, and it was a life-changing opportunity for her

because it made her realise she was going to manage to achieve her dream.

Without the credit union,

it wouldn't have been possible to take that first initial step

and to give the university the money to get on to the course.

It's great being able to help people do things like that.

That's why we have a unique difference from other financial institutions.

We're not here to push loans on people,

but we're here to help people when they most need it,

and knowing you have helped somebody,

whether it be to get an education or to help buy a car or kids' school uniform, whatever it may be,

it's lovely knowing you've helped that person - not you personally,

but the whole organisation has helped that person to maybe realise

they could realise a big dream they've had for a long time,

and knowing you are part of it makes you feel good.

It's been a long journey, but one that's starting to pay off.

At the moment, I'm preparing for my final exams.

I have a conditional offer from Glasgow University,

which means I just need to get the grades necessary

and hopefully should be starting in September.

It's been a very exciting time for me.

It's just given me a whole new direction and purpose to my life,

and although it can be a little bit stressful,

it's stressful in a good way and it's just been...

the whole experience has just been fantastic.

I can definitely picture myself graduating in four years' time

and being in a place where I can support other people

the way that I've been supported.

At London Capital Credit Union,

Antony is hoping to be accepted for a small loan to throw his grandkids a birthday party.

Yeah, thank you very much.

I've always got it because the credit union is a marvellous place.

If I get the loan today, I would feel elated.

Being able to pay for the flights, the holiday,

and funding my grandchildren's first and second birthdays.

OK, Antony, would you like to come over?

Pleased to tell you your loan's been approved.

-Thank you very much.

-You can get your holiday and enjoy the grandchildren's birthdays.

You know the ropes. We have the sum you're borrowing,

plus your existing balance,

there's the new balance. Be paid off over 33 months,

the total interest is £225 a month to your loan

and £50 to your savings.

That'll go to your main account now.

Remember, you can't touch your savings in account one while you have the loan.

If you're happy, you need to sign and date there on both copies, please.

It's fairly straightforward for us.

You're obviously going to pay less money than you would be if you were paying on those credit cards.

You've got a good track record with us, which is why we approved the loan.

It's done on that, rather than credit score, obviously.

-Thank you very much.

-You've not changed bank accounts, have you?

-No.

-OK, this money will go to your bank account,

should be in your account later today.

-There we go, Martin.

-That's lovely.

Give me that one, there's your loan agreement,

there's all your original documentation.

There's an envelope to pop it in to keep it all safe.

-Thank you very much.

-You keep hold of this.

We'll send this off, this will come in the post to you.

-No problem.

-Cut the credit cards up and use this one instead.

-I certainly will.

-You'll save a lot of money.

OK? Thanks very much, take care.

Thank you very much, Martin.

-See you soon.

-Bye-bye.

Byesy-bye.

This, for me, is a very straightforward accept.

A quick look at his bank statements show that the member's managing his

money sensibly and understands what he's doing.

It went very well.

I got what I wanted.

I've never ever been let down by the credit union before and I'm actually

over the moon. Words can't express what I'm feeling at the moment.

My family will be overjoyed for me.

And they will be happy that they're going on holiday,

and that the party is going to be a great party and it's going to be a great day.

Since our filming, Kate has finished paying off her loan,

she's passed her exams and she's secured her place at Glasgow University to do nursing.

Brett's Pets has taken delivery of these very cute dwarf hamsters...

..and Sue has been taken on full-time by the credit union...

..where she loves helping people avoid the financial pitfalls she fell into.

What happened to me could, I think, happen to anybody.