Leading Lights Offer Affordable Credit in Rural Areas
07 June 2010
Levels of personal debt in rural areas could reach critical levels with more people turning to loan sharks unless more affordable credit is made available, the chief executive of a leading North East debt and social law advice service has warned.
Liz Chadwick, chief executive of DAWN Advice, a social enterprise based in Seaton Burn which gives free telephone-based debt and legal advice to people throughout the UK, said more still needs to be done to help people living in rural areas as they continue to struggle financially following the recession.
The warning came as DAWN Advice announced a partnership with Five Lamps, also a social enterprise that, among other services, focuses on financial inclusion, offering personal loans and financial advice to housing tenants.
As part of the arrangement, DAWN Advice will be advising people to turn to Five Lamps for help if they are struggling to access affordable credit.
Liz added: "Loan sharks prey on people who are so desperate to make ends meet that they take on loans at exorbitant rates of interest. This can be a particular problem in rural areas, which have been hit worse than most by the economic downturn.
"We might be out of the recession now, but the effects will continue to be felt by individuals for years - as a society we must ensure people are not excluded from access to financial services just because they don't live in an urban area.
"We want to make sure that people who come to us for advice know that there is always a much better alternative than turning to loan sharks. This is why we are teaming up with Five Lamps, a like-minded organisation that has made a commitment to help people in rural areas."
Graeme Oram from Five Lamps added: "We are delighted to be in partnership with DAWN Advice - we want to be able to add an extra dimension to the levels of service that DAWN already provides when giving financial advice to people who need it most.
"Five Lamps has a strong ethos of being inclusive - everyone is welcome. We work with some of the hardest to engage people and those most excluded in society and we continue to offer our support to our customers for as long as they need it."
Established in 1998, DAWN Advice is a social enterprise and a member of the UK's largest network of free, advice-providing organisations, adviceuk and a member of the National Association of Citizen's Advice Bureau.
The Five Lamps Organisation is one of the largest community-led social enterprises within the North East. Established in 1989 Five Lamps provides a holistic approach to economic and social renewal. Five Lamps is also a registered charity.
Anyone worried about issues at work or who may benefit from further debt advice should contact DAWN Advice on 01670 785 512.