Enticing payday lending websites have been blocked by Salford council in a drastic attempt to prevent people from falling into greater debt and digging themselves deeper into financial burden.
Residents in Salford will no longer be able access any payday lending websites on computers in local libraries and other council buildings.
The council are now diverting money-struggling residents to Salford Credit Union, which tries to provide more affordable lending instead of high interest options.
Payday lending websites can charge up to a staggering 4000% interest which can cause people to gather more debt with borrowers owing huge amounts of money each month.
Salford City Mayor Ian Stewart said: “Thousands of people in Salford are affected by government spending cuts, benefit changes, unemployment and the rising cost of living.
“That’s why we have decided to take action and offer people a sensible alternative.”
With the current economic situation there’s a huge temptation to turn to quick and easy cash but people need to be made more aware that there are other possibilities.
By working with the city council, residents should be able to tackle high cost lenders.
Organisations like Salford Credit Union are regulated by the government which means people’s savings are far more safe and secure.
Sheila Murtagh, Chief Executive Officer of Salford Credit Union, said: “We’re here to support people to take control over their finances with affordable loans and savings.
“We offer our members loans with interest rates capped at 26.8% APR, it’s a much more affordable alternative.”
Salford Credit Union are also working with local churches, trade unions and community organisations to campaign against loan sharks, pay day loans and address child poverty in Salford.
Picture courtesy of Dennis S Hurd, with thanks.
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