Tagged: debt advice

Hartlepool foodbank set to launch debt advice service to help struggling families

Hartlepool Foodbank is set to expand its services to help people deal with debt after winning a funding boost.

The Churches Together project, which has given out a whopping 60 tonnes of food to over 8,000 individuals since launching two years ago, secured the cash prize from Lloyds Bank’s Community Fund.

The foodbank, based in Church Street, came second in a regional online public vote to secure the funding.

The £2,000 will be used to launch a new Community Money Advice (CMA) debt advice service this year.

Al Wales, co-ordinator of Hartlepool Foodbank, said:

“We are so grateful to everyone who voted for us.

“Finishing second was a big achievement and shows the level of support there is for the work of the foodbank in the town.”

Foodbank bosses decided to focus on debt-related issues as it is one of the biggest issues faced by clients who are referred to them for emergency food parcels.

The new service will be headed up by foodbank trustee Lisa Lavender.

She said:

“We are delighted with this award because it means we will be able to offer completely free, face to face, quality money advice services which will contribute to the good already being done around the issue of debt in the town by agencies such as West View Resource Centre, Citizens Advice Bureau and Credit Union.”

According to the Trussell Trust charity, which runs the Hartlepool and other foodbanks, more than one in 10 UK families have taken out a pay day loan to make ends meet in the last year.

And almost a quarter have fallen into debt to be able to provide for the family.

Managers say they are currently well stocked with beans and pasta but are very low on tinned fruit, sugar and fruit juice and custard and tin tomatoes or pasta sauce.

You can leave them in permanent collection points at Tesco Extra, in Burn Road, or Morrisons, in Clarence Road.

Supporters can also take them to the foodbank on Tuesday or Friday mornings.

Source –  Hartlepool Mail, 19 Jan 2015

Struggling Sunderland families owe £9million in unpaid bills and loans

Thousands of Sunderland children are living in families trapped by debt, a new report says.

The figures, released by The Children’s Society and debt charity StepChange, show a third of households in Wearside are forced to borrow money to pay for essential bills.

More than 5,200 families in the city – 15 per cent of the total – are failing to keep up with household bills and loan repayments.

It means an estimated 7,471 Sunderland children are living in families with problem debt, with each struggling family behind on payments by an average of £1,669.

Across the city, families owe a total of £8,716,944 in bills and loans.

In Durham City and Easington, the problem affects 2,957 families, with 4,970 children, and a total of £4,934,526 is owed in debts.

The charities’ report, The Debt Trap: Exposing the impact of problem debt on children, claims family debt causes youngsters to suffer from worry and anxiety, experience bullying and miss out on essentials.

The Children’s Society chief executive, Matthew Reed, said: “This research exposes the shocking reality of parents lying awake at night worrying and unhappy children going without.

“Many families are feeling the squeeze, and parents struggling on low wages are battling just to pay the bills.”

In Sunderland, Pallion Action Group has seen a surge in requests for debt advice since the welfare reform capped benefits at £26,000, and now helps between 100 and 175 people each month.

Money and debt advisor David Brass said the majority of those he deals with owe money to utility companies or have rent and council tax arrears.

He said: “We don’t see so many with credit cards, store cards and loans anymore. What we are seeing is people who cannot pay their gas or electricity bills.”

Most advice he gives involves identifying priority debts, like rent and council tax, over general credit debts, then working out a budget and sticking to it.

Luxuries go out the window,” he said. “That means losing your Sky TV and non-essentials like home insurance. They have to try and maximise their income and minimise expenditure.

“As long as they keep a roof over their head and food on the table, that’s our job done. We give food parcels out as well. A loaf of bread can make a big difference to someone who is desperate.”

The centre gives out about 25 food parcels a week through its partnership with Sainsbury’s, Mr Brass said.

He said he would encourage parents to tell children, especially teenagers, about money problems, as muns and dads are often under pressure to buy expensive gadgets or designer clothing.

Many parents get into debt because they do not want to see their children go without, so it is important that they understand the pressures,” he added.

Most parents always make sure children are clothed and have school uniforms. There are one or two who really struggle who can’t afford the uniforms.”

The Children’s Society and StepChange are calling on the Government to consider a “breathing space” scheme to give struggling families an extended period of protection from additional charges, further interest and enforcement action.

Also, review whether the protection for children against the harm caused by debt collection is working; provide earlier and wider access to debt support and advice, and impose tighter restrictions on advertising loans to youngsters.

Source – Sunderland Echo,  12 Aug 2014

South Tyneside Waging war on payday lenders

Council leaders in South Tyneside are being asked to launch a crusade against high-interest rate lenders.

The move comes as the Citizens Advice Bureau in South Shields says the number of people approaching it with debts resulting from payday loans has doubled in the last two years and the average amount owed is £1,610.

A motion, to go before a full meeting of South Tyneside Council council later this week, calls for a series of measures to clampdown on lenders like Wonga, The Money Shop, Quickquid and Payday UK.

The recommendations are:

* Blocking access to loan company websites from council-owned computers.

* Issuing public warnings about the dangers of payday lenders.

* Work with partners to stop lenders locating in South Tyneside and prevent them promoting their businesses in the borough.

* Try to get licensing powers extended to limit the expansion of lenders in the borough.

* Provide debt advice to people affected by lenders.

* Promote the Bridge Community Bank in South Shields as an alternative lender.

> If it’s any incentive, I’ve got an account with The Bridge !

http://www.bridgescommunitybank.org.uk

The Money Shop, which has an outlet in Fowler Street, South Shields, offers an annual interest rate of 390.94 per cent and an annual percentage rate – the rate for a payment period, multiplied by the number of payment periods in a year – of 2,962 per cent.

Anyone taking out a £200 loan would face repaying – in a single payment, within 28 days – £259.98.

Coun Allan West, the council’s lead member for adult social care and support services, is a signatary to the motion, and says he is concerned that the most vulnerable people in the borough are falling foul of the lenders.

He said: “It is easy to understand the financial pressures that lead people to rely on payday lenders, but their excessive interest rates mean there is a real risk of a short-term financial issue turning into a long-term spiral of increasing debt and interest payments. A national cap on the cost of lending would go a long way towards protecting some of our most vulnerable citizens from the dangers of payday lending.”

He added: “In the meantime there is a lot we can do locally, by letting people know about options like The Bridges Community Bank, which offers much lower rates, as well as keeping money in the local economy.

“I would encourage anyone who has financial problems or concerns about the Government’s changes to the welfare system to contact the council’s welfare rights service on 424 6040.”

The full council meets at South Shields Town Hall at 6pm on Thursday.

Payday  lending firms have become a major political issue in recent years.

Many councils already block access to lenders’ websites from libraries and other public buildings and South Shields MP Emma Lewell-Buck, last year, signed a national charter – supported by some of Britain’s biggest debt, consumer and anti-poverty organisations, including Which?, Citizens Advice, StepChange Debt Charity and Church Action on Poverty – calling for tougher regulation of payday lenders.

In October 2012, Newcastle United sparked a storm when the club announced a four-year sponsorship deal with Wonga.com.

The payday loan company now has its name on the club’s shirts.

Wansbeck MP Ian Lavery labelled the company “morally bankrupt” on social networking site Twitter.

Before the start of this season, the club’s star striker, Papiss Cisse, said he would not wear the club shirt bearing a Wonga logo on religious grounds, but the row was resolved in time for the club’s warm-up match against St Mirren.

Source – Shields Gazette,  11 March 2014