THE Church of England is taking a significant step by offering to accommodate credit unions in its buildings.
Some people may find it uncomfortable to have money lenders in churches.
However, the Church recognises that there is a pressing social need to support people who are finding it hard to make ends meet.
Currently, many of those who are hard-pressed turn to payday loan companies. Slick marketing and quick access to money is appealing but the interest rates are crippling by any standards if a borrower falls behind on repayments.
Debt charity StepChange estimates that 19 per cent of people in Nottingham have had a payday loan in the past year – a dramatic increase on eight per cent the year before. On average, Nottingham borrowers owe £1,660, which is a big sum, particularly for people on a low income when interest rates can top 5,000 per cent per year.
Hard-up residents would be better off using a credit union which offers lower interest rates.
The Church has rightly recognised that it has a role to play.
A problem for credit unions is that they are less accessible than payday lenders. The Church in Notts has 300 buildings, which gives it the reach the unions crave. This partnership has the potential to make a real difference.