COUNCILLORS have agreed to financially support a credit union in South Derbyshire to avoid people being left in debt from pay day loan companies.
At a meeting of South Derbyshire District Council on Thursday a motion to support Swadlincote based union Money Spider, proposed by Councillor Michael Stanton, was given the thumbs up by members of the authority.
It includes a proposal to loan £50,000 to the voluntary run union.
Speaking at the meeting, Councillor Stanton, said: “It is going to be some time before improvements in disposable means of income are sorted. We all have problems at some time in our lives, whether it is illness or jobs, and have to pay for different things, from weddings to divorces.”
He said that people, especially those without bank accounts would be encouraged to use the union, and it would be somewhere to go other than loan sharks.
He said: “Money Spider needs all the help it can get.
“It helps people to save and feel more secure and increases the sense of well-being.
A vote saw all of the councillors pass the motion, with Councillor Kevin Richards calling it an ‘excellent’ motion. He said: “There are many issues that are facing people on low disposable incomes and Money Spider is a god send.
“Derbyshire County Council are experimenting with credit unions throughout Derbyshire, and Erewash has already got one to cover the whole of Derbyshire.”
The registration fee of some South Derbyshire residents wishing to join credit unions will be paid by the council, and the director of finance will now investigate supporting Money Spider with a loan of £50,000.
People need to be a member to be able to apply for a loan, which can be used to clear credit card debts, and to pay for household goods.
More volunteers are needed at Money Spider, which can be contacted on 01283 214434.