PEOPLE in east Durham are being encouraged to take advantage of a new savings scheme rather than take out expensive loans The East Durham Area Action Partnership’s flagship project has been set up with the Durham County Credit Union.

It is in response to a request from forum members to tackle the increase in legal and illegal high interest money lending schemes which contribute to the financial hardships suffered by many in the community.

The AAP has used funding from the area budget to set up the two-year scheme, which is also supported by The Northern Rock Foundation and the Coalfields Regeneration Trust, to tackle debt, encourage saving and provide access to low interest loans.

It is hoped that by encouraging local people to use a credit union, loan sharks, pay cheque loans and doorstep lending can be avoided.

Twelve volunteers are already trained and six community collection points have been established, where people can pop in to make a payment. For those who cannot attend collection points, Pay Point access points can be used to deposit money.

The project will link in with the Citizens Advice Bureau which can offer debt advice for anyone struggling with their finances.

Shealagh (CORR) Pearce, East Durham AAP co-ordinator, said: "The AAP forum members recognised the misery and stress that debt can place on families and individuals.

"The commitment by the AAP to support a project that will provide a credible alternative to high interest loans has resulted in a partnership approach to the issue."

Sid Rooke, Durham County Credit Union manager, said: "Durham County Credit Union is delighted to be working closely with East Durham AAP encouraging the savings habit and offering low cost loans.

"The board of the Credit Union is committed to providing a service to the East Durham community which will continue long after the two year project has come to an end."

For further information contact Ms Pearce on 03000-262054.