Christians Against Poverty welcomes the Church's recognition of the issues that credit can cause for the poor in our nation. We are glad that the Archbishop is taking steps to both publicise and engage with the issue of debt and personal lending in the UK.
It is important to recognise that payday lending is just one of the many causes of unmanageable debt and the stress and pressure this causes to countless individuals in the UK. However, whilst there is clear demand for this type of credit, CAP is concerned at the ease with which individuals can access it. Often it is the most desperate, many of whom are already in debt, that will turn to this form of credit, providing temporary relief but exacerbating the situation over the long term. The rise of payday lending over recent years, in light of the Credit Crunch where many more mainstream lenders reduced their lending, should be one of considerable concern for us as a country. CAP exists to help those in severe debt and also to teach money management through our CAP Money Course to prevent having to use such credit.
Credit Unions play a valuable role in society, providing help and affordable loans to many in need. For many who are in debt, an additional loan is not the way out. In situations such as these, CAP can offer real practical advice through either our debt help service or CAP Money Course.
Christians Against Poverty engage with 233 local churches across the country so that we can help those struggling with unmanageable debt. CAP further engage with over 1,000 churches that teach people how to budget through the CAP Money Course. This allows people to navigate the complex world of personal finance and make the most of their money.
We are dedicated to working closely within the finance industry on issues of standards and regulation to achieve the best and fairest solution for all involved.