New loan creating “financial resilience” through cost of living crisis backed by Salford Credit Union

A new loan aiming to support Greater Manchester families suffering the ongoing cost of living crisis has opened, with backing from Salford Credit Union.

The ‘Sound Pound’ loan launched yesterday (15 February) and is available for any amount between £200 and £1000.

Open to anyone with squeezed finances that are new to Credit Unions, the loan was launched by the ‘Sound Pound’ consortium, a joint initiative from all eight community unions across Greater Manchester.

According to Greater Manchester Residents Survey, a quarter (24%) of Greater Manchester residents are seeking information or support for the first time, reinforcing how the cost of living crisis is bringing financial concerns to those not traditionally experiencing them.

Backing for the loan comes from the likes of the Greater Manchester Combined Authority (GMCA), and was launched by Andy Burnham, the Mayor of Greater Manchester.

The city region is unique as it is currently the only consortium of credit unions in the UK which has launched a loan product in response to the cost-of-living crisis.

Mark Brazendale, chief executive of Salford Credit Union and member of Sound Pound, said: “With the ongoing cost of living crisis, we know there are many people living in our communities who usually get by ok but are now experiencing a real squeeze and are unsure where to turn for help.

“As credit unions, we can help and our new Sound Pound loan is our response to help local people get back on track and avoid any long term impacts of inflation and rising household costs.

All eight Greater Manchester community credit unions have signed up to the initiative, including Cash Box Credit Union (Tameside), Hoot Credit Union (Bolton), Manchester Credit Union, Oldham Credit Union, Salford Credit Union, South Manchester Credit Union, Stockport Credit Union, and Unify Credit Union (Wigan).

Andy Burnham, Mayor of Greater Manchester, said: “Credit Unions have a key role to play in the financial crisis that we all now face.

“I’m delighted to see them come together across Greater Manchester to provide a local and ethical alternative to the high-interest payday loan companies and loan sharks.

“Sound Pound is a fantastic initiative that shows Greater Manchester is doing things differently and coming together to support each other.”