UK residents are being advised to make the most of three key sources of support which are available – Credit Unions, other community lenders such as community banks and CDFIs, and free benefits calculators.

As many as 1.08 million people may already be in the hands of illegal lenders, and a fifth of UK adults had less than £100 in savings even before the current financial crisis, with recent data from Fair4All Finance having shown that over 16 million people in the UK are particularly vulnerable to these practices, or are in financially vulnerable circumstances.

Credit Unions and other community finance providers currently help thousands of people in the UK to get credit to cover essential or unexpected expenses. They also support members to put what money they can aside as savings, even whilst borrowing.

An alternative to high street banks, for many years local Credit Unions have assisted households in a range of financial circumstances to afford essential items or cover unexpected expenses, as well as helping them to build their financial resilience.

Fair4All is also urging the public to make sure they are claiming the correct benefits to help with the cost-of-living crisis by using online benefits calculators such as those recommended by the Government.

Credit unions and community finance providers have decades of experience in supporting households to save and borrow. They are experts in lending responsibly, whether that’s to people who are well off or to those in vulnerable circumstances. They are a key sector as we go through a distressing cost-of-living crisis. Lenders such as these, and the benefits calculators available online, could be vital resources as local people try to navigate this difficult time.

Article by Stop Loan Sharks. To read their winter newsletter click here.