There are a growing number of websites and high street outlets offering very expensive short term loans and credit as well as pay day loans, which can leave borrowers in an uncontrollable spiral of down hill loan debt which they are never likely to pay off.

But a new website, which has been launched today (Monday 16th April) will offer discounts on a range of household items from its online shop and also direct customers towards their local credit union, rather than encourage them to look for a short term loan or credit through a pay day loan company.

Smarterbuys.org.uk is being launched by Northern Housing Consortium (NHC), a social housing organisation and the site will offer one particular deal per month at half price, in order to encourage people to use the site.

Whereas the majority of websites of this nature direct their customers towards expensive pay day loans, or other short term borrowing, such as weekly payment plans which may seem like an easy loan option, but will cost the borrower a great deal over the loan term, Smarterbuys.org.uk will direct customers towards a credit union where they can obtain a cheap loan deal to suit their needs.

Credit unions have been around for many years, but are starting to grow in popularity once again as an alternative form of savings and loan company, particularly since the government recently relaxed the criteria for setting up a credit union and rules on membership and traditional high street banks are not offering good savings rates or particularly cheap loans at the moment.

Jo Boarden of NHC said “Pay day loans and weekly payment stores offer easy borrowing, but at staggeringly high interest rates. We have created Smarterbuys as a sustainable alternative. Membership of a credit union can offer real benefits in terms of financial advice and support as well as savings and low interest loans.”