4 Essential Keys to Access Affordable Credit in Scotlandsubmitted on 20 May 2016
Scotland's economy has, time and again, demonstrated that it is a wealthy nation. According to its government website, its impressive wealth is due to its construction industry which secures an estimated 48,135 enterprises, constantly increasing Gross Domestic Product (GDP), global food and drinks manufacturing exports, and its solid and reliable financial foundations.
Given these facts, there is no denying that Scotland is indeed capable of being independent and can sustain its citizens' needs. However, because of this surge in the Scottish economy, it paves new financial inequalities in terms of affordable credits. According to The Carnegie UK Trust's Affordable Working Group, its credit industry has created a financial cycle which excludes the country's deprived borrowers. The access to credits in Scotland is most expensive for citizens who can least afford it, said Jeremy Peat of Affordable Credit Working Group.
To break down the barriers and put an end on these inequalities, these four keys are highly suggested as initial steps:
Creation of Minister for financial inclusion
As part of the initial steps to support the provision of affordable credit, the Scottish government should appoint a minister who will be responsible for the financial inclusion of all citizens especially those deprived ones.
Easy access to basic bank accounts and community development financial institutions (CDFIs)
Allowing the most deprived citizens of the country to access, at least, the basic bank accounts through a credit union and the CDFIs using the identity card verification is one way to create a financial cycle that is on their financial level.
There are currently nine banks that offer the basic bank accounts to citizens who have passed the application process in the local finance organization. These finance organizations are responsible for the verification of the applicant's identification and the assessment of the applicant's credentials.
Partnership with trusted local credit unions
The advantage of having a partnership with the credit union is the easy repaying method through payroll. This system of payment works well on the borrower's end as loans via payroll guarantee and secure your credit credentials which will eventually allow you to access more short term affordable loans for emergency situations.
A lot of credit institutions have favored this payment method, calling this method a win-win situation for both the lender and the borrower. If ever you are searching for a payday loan, applying for credit institutions is a great consideration.
Additional investment to provide for Scotland's CDFIs' growth
The community development financial institutions cannot possibly shoulder a huge amount of credits for a long time. This is why the national investments from foundations, commercials, trusts, and social investors are much appreciated. Unlike credit unions that have enough savings to provide their loan capital, the CDFIs do not have the same privilege; thus, it relies on the external form of investments.
Successfully addressing these financial inequalities with regards to affordable credits is one way to help the country's deprived borrowers. These four initial steps may have a long way to go to have a full effect on the society, but with a proper implementation and analysis on the Scottish economy, you are certainly on the right track to better your financial management.
|
|
