Bishop backs savings scheme

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THE Bishop of Southwell & Nottingham is backing a new campaign to support an ethical saving scheme that could help prevent people spiraling into deeper debt.

The 100x100 scheme launched this week, asks people to consider saving at least £100 in a local credit union, offering loans at affordable rates and preventing people falling into the trap of extortionate loan sharks.

The aim is for 100 people to save at least £100 and leave it in the credit union for at least 12 months.

The new campaign aims to produce at least £10,000 worth of savings through local credit unions which can then help fund affordable loans for anyone who needs to borrow funds.

“I am a great fan of credit unions because they offer a way in to saving and borrowing at sensible interest rates for those with the lowest incomes,” said the Rt Revd Paul Butler.

“There is real concern about payday loans which charge very high interest rates, sadly legally.

“Then there is also real concern about loan sharks exploiting the poorest. If those of us who have more, save with the credit union, then we help them have increased capital to offer helpful loans to those who need them at reasonable interest rates.”