Credit Unions: A Partial Solution to the Consumer Credit Problems of Low Income Families

An anomaly of Australia's economic system is that those who can least afford to pay dearly for consumer credit (low income families), are the ones who must pay more. It is suggested that a partial solution to the consumer credit problems of low income families lies in the use of credit unions. This paper examines the consumer credit problems of such families, illustrates how credit unions function and indicates where they may be useful in providing cheap credit to low income families.