"There will be repossessions” warns union

5:10pm Saturday 2nd August 2008

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Local families could be driven into the arms of loan sharks as the credit crunch continues to bite.

More and more people are getting into debt or facing problems paying mortgages, rent and fuel bills, according to local credit union CredCer.

“The problem for us is that we are not always able to help and if we can’t help then the next step for people in extreme debt is often the loan sharks or even crime.”

CredCer members’ assistant, Nick Furbear

Members’ assistant Nick Furbear said: “We are currently seeing a great increase in applications for loans because many people are getting into financial difficulties. Many have mortgage problems and there will be repossessions.”

He added: “The problem for us is that we are not always able to help and if we can’t help then the next step for people in extreme debt is often the loan sharks or even crime.”

County Councillor Liz Campion attended a recent CredCer meeting.

She said: “People are increasingly feeling the pinch and are under pressure with the credit crunch across the whole county.

“Prices are rising, but pensions and salaries are not, so people are having to economise.”

She added: “We are trying to get an escape route for people who find themselves in difficulties. “We need a safety net like CredCer, so people are not driven into the arms of loan sharks, and we are looking for ways to assist the organisation.”

CredCer chair Carol Morgan says a number of borrowers are already applying for administration orders because of difficulties with repayments.

Mr Furbear said: “We are getting more and more popular with people who need loans because of the financial crisis they are facing and we need help with funding to pay for more staff and buildings for collection points to get more money in.

“If we can increase our membership substantially we would be big enough to be able to offer fixed rate savings.”

Cllr Campion and Cllr Mark Cole of Cardigan, are working towards improving the situation in both of the counties.