Households in Amuru district and Northern Uganda at large are associated with very poor welfare conditions. The indices of household welfare in the region have deteriorated over time despite participation in informal savings schemes such as Village Savings and Loan Associations (VSLAs) among others. There was therefore need to carry out a scientific investigation to establish the impact of VSLAs on household welfare or socio - economic status (SES). The study was conducted in the Northern Uganda district of Amuru. Primary data was collected from a total of 174 respondents (households) who were; old VSLA participants, non - participants and new participants (each group comprising of 58 respondents). Comparisons of the old VSLA participants were made against the non and new participants regarding the indicators of SES or welfare such as; the mean monthly income, the mean asset index (possession scores), the mean education expenditure and the mean number of Income Generating Activities (IGAs) initiated and being operated as a result of participation in VSLAs. The means of the asset index of VSLA participants were also compared on the basis of pre - VSLA membership and post - VSLA membership. Mean differences were compared and tested using the two sample t – test. The method of Principal Component Analysis (PCA) was used to compute the asset index. To further examine the role of VSLAs in enhancing rural household’s welfare, the method of Ordinary Least Squares (OLS) was used to analyze the impact of participation in VSLAs on household asset accumulation (represented by the asset index). On education, a logistic regression analysis was carried out to analyze the impact of participation in VSLAs on school drop - out rates. The OLS method was also employed to investigate the impact of participation in VSLAs on the number of IGAs initiated and being operated.