Mainers coping with high heating fuel prices

PORTLAND, Maine –As winter heating season kicks into gear, a growing number of Mainers are taking out loans to pay for their heating bills.

With oil prices averaging $2.34 gallon, a number of credit unions in the state are offering low-interest “energy loans.” Kerosene, propane and electric rates are also up sharply this year.
University Credit Union, based in Orono, says its energy loans can be used to pay for fuel, buy a wood stove or take measures to make a home more energy-efficient, such as adding insulation. It is one of a handful of credit unions to offer consumers loans to help pay for high fuel costs.

University Credit Union officials said the interest rate of 5.99 percent is half the rate of most unsecured loans. Payments are made directly to oil companies or contractors so the credit union is assured the money is spent for its intended purpose, said Melanie Israel, marketing director for the credit union.

Boston Globe