Over 97,000 people in Doncaster are in financially vulnerable circumstances

The latest figures come from financial inclusion body Fair4All Finance, which has launched the first national campaign to raise awareness of credit unions and community lenders as an alternative to payday and illegal lenders.

For the 97,529 adults identified in Doncaster, being financially vulnerable means that due to personal circumstances such as poor health, experiencing negative life events, low financial resilience or low capability, they are unlikely to access mainstream finance.

Now Fair4All Finance is urging anyone worried about their finances to contact their local credit union or community lender, including Community First Credit Union, alongside making sure they are claiming the correct benefits to help with the cost of living crisis.

Lauren Peel from Fair4All Finance added: “With as many as 1.1 million Brits already in the hands of illegal lenders, and a fifth of UK adults having had less than £100 in savings even before the current financial crisis, the community finance sector is a potential lifeline for anyone worried about their finances.

“Credit unions and community lenders have decades of experience in supporting households across the UK to save and borrow. They are experts in lending responsibly, whether that’s to people who are well off or to those in vulnerable circumstances. They will be a key sector as we go through a distressing cost-of-living crisis and lenders such as these could be vital resources as local people try to navigate this difficult time.”

An alternative to high street banks, local credit unions assist households in a range of financial circumstances to afford essential items or cover unexpected expenses, as well as helping them to build their financial resilience. They are not-for-profit and will only lend if it’s the right thing for an individual’s finances and help them to consider other options if a loan isn’t the right choice.

The campaign has also been backed by The England Illegal Money Lending Team which operates as Stop Loan Sharks in the area.

Cath Williams from Stop Loan Sharks said: “We are proud to support the vital work of Credit Unions and other community lenders across the country as they help build financial resilience in communities and increase access to fair and responsible finance, particularly for those excluded from mainstream services.

“Loan sharks are currently preying on people’s desperation the region right now and offer nothing more than a vicious cycle of debt and misery in return.

“If you are worried that you may have been targeted by a loan shark, we urge you to take action and contact our team for help. We'll give you confidential support and help you find a way out of your situation.”

If you are looking for a credit union near you, please visit: FindYourCreditUnion.co.uk.

There are other community lenders who are mostly not for profit, and who reinvest any surpluses into serving customers who are in financially vulnerable circumstances, which can be found on FindingFinance.org.uk.

In these confusing and worrying times, local journalism is more vital than ever. Thanks to everyone who helps us ask the questions that matter by taking out a subscription or buying a paper. We stand together. Dominic Brown, editor.