Credit Unions Heralded for Helping Americans Escape Debt

Posted on Fri, May 04, 2012

Credit unions are well-known for offering affordable products to consumers and small businesses, but there are also other financial benefits of becoming a member of a credit union.

The Simple Dollar blogger Trent Hamm recently contributed a post in the Christian Science Monitor, and discussed his battle with credit card debt years before he became a personal finance guru. As a young man who wanted to consolidate or reduce his debt levels, he found himself with few options because he held little collateral. However, he became a member of his local credit union and took advantage of its financial education tools, various loan types and professional assistance.

Hamm was able to reorganize his finances and climb out of debt after becoming a member of his credit union, and reports that millions of Americans who are struggling with debt should consider the same option.

Credit unions have grown their membership base in recent months as a result of the affordable products and low service fees they offer to members. In addition, many credit unions are either open to everyone in the community or offer reasonable eligibility requirements to consumers. Many experts agree that the migration toward credit unions and other smaller financial institutions will continue to gain momentum over the course of the year.

Tags: Service Quality