Over 180,000 Sheffield residents 'financially vulnerable' and at risk from loan sharks
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A fifth of adults had less than £100 in savings even before the cost of living crisis, according to industry body Fair4All Finance. It has launched a campaign with lenders Sheffield Credit Union and Fair Finance to help people avoid high interest payday lenders and build resilience through ‘responsible financial products’.
Single mum Sarah, aged 38, of Dinnington, approached Fair Finance in May to borrow £600 when two unexpected bills came in at once - after a month where her wages were lower than normal due to school holidays. She had to fork out to fix her washing machine and a vet’s bill - but chose Fair Finance over a loan shark.
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Hide AdShe said: “I don’t have an overdraft or much in savings, and lots of places won’t give me a loan because I don't have a high credit score and I’m on low wages. I was really worried about what we’d do – I couldn't find all the money in one go, so I was happy to use Fair Finance, which was much better than going to a loan shark.”
The repayments were affordable and she’s nearly paid off the loan, she added. Credit Unions are not-for-profit and will only lend if it’s the right thing for a person’s finances and help them consider other options if necessary, according to Jackie Hallewell, CEO at Sheffield Credit Union.
She added: “We have 5,000 members across Sheffield and want everyone in the area to feel reassured in knowing that organisations like us are here, ready to support more of you to take control of your finances and navigate these tricky times.
“We’d urge anyone who is already in receipt of benefits, or somebody who is unsure whether they can claim anything, to check whether they are missing out by using a benefits calculator. In just a few minutes you could find that you are missing out on hundreds of pounds of income each month - and if this means you don’t need to take out a loan but can instead keep saving with us, we see that as a good result.”
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Hide AdFor more information about Sheffield Credit Union go to: https://sheffieldcreditunion.com/