This week Credit Union Times takes a look back at a time when credit flowed like water and holiday spending was no problem with a wallet full of a plastic.
In 1995, it looked as if Christmas club accounts were pass? with the credit card maxing, buy now, pay later generation. But, Credit Union Times managed to find a few credit unions that were running successful Christmas club programs.
Dupaco Community Credit Union had just paid out its biggest Christmas club payout ever, some $2.3 million.
Credit union Christmas club advocates said that they used newsletters and brochures mailed out at the same time members are getting hit with bills from the previous holiday season to promote the account.
With Christmas club accounts, members learned saving habits and an executive vice president at Postal Credit Union in Los Angeles said that Christmas club members tend to save more in their savings accounts and have higher checking account balances.
Other credit unions at the time promoted holiday loans as a way to help members deal with holiday spending. Credit unions marketing the loans as an alternative to credit cards, with significantly lower interest rates.