What Is Moneywise?

Moneywise credit union is a financial co-operative, offering saving accounts, loans and related services to their members. Members must be part of a common bond, and for Moneywise this means everyone who lives or works in the Tyne and Wear, County Durham, Teesside or Northumberland region. They are a not for profit organisation, which means that any surplus they make is reinvested in their business running costs, and if they make enough, they are then able to pay out a dividend to all their members. Membership is open to individual members and corporate members (like Inspired). Moneywise offer payroll savings and lending solutions to Inspired staff.

Moneywise Saves The Day

A colleague approached Inspired’s HR department because they were facing financial difficulty. They had taken out a high-interest lending agreement, had credit card debt and were struggling to pay their essential living costs at the end of every month. After speaking to the individual, we realised that the most pressing issue was the high-interest credit solution. This credit facility markets itself as flexible, affordable borrowing. They are a lending facility that is added to your bank account and offers an external overdraft; however, using this facility causes interest and repayment charges of over 200%. Our employee found that any time funds were credited to her account, i.e her monthly salary, they were automatically withdrawn by the credit facility. This then caused the individual to rely on their credit facility again by the end of the month, continuing a pattern of repeatedly using the high-interest borrowing solution. Our agent was paying over £160 interest a month, on top of repaying the £550 agreed on credit facility balance.

We explained our employee’s situation to Moneywise. After speaking to an advisor, we were able to prove our agent’s debt and prove their catch twenty-two situation. By utilising a personal approach, to our employees’ issue, moneywise offered a payroll loan which would pay off and consolidate her credit facility, and credit card debt. By working together and providing sage financial advice, our agent is now aware of the dangers of fast, high-interest lending and has a plan to be debt-free by 2022 for a lot less interest. Thanks Moneywise!