An affordable option

24th April, 2012

Five Lamps have been helping people to manage their money through a ‘Capacity Builders’ course, which helps people to make a budget, understand what financial terms mean and also to cope better with their debt. It also looks at what help is available for people if they are looking to get back into employment or self-employment. After the workshop, our customers have the option of a one to one meeting with a Five Lamps Loan Officer.

Linda from Hartlepool came along to a Capacity Builders workshop and explained that she was worried about her debt. John Hird, Five Lamps’ Senior Loans Officer contacted Linda after speaking to her Support Worker. Linda explained to John that her main concern was with 2 small loans from a Cheque Centre that had an annual percentage rate (APR) of 2,115%. If these loans are not repaid in full each month, Linda can incur a charge of £25.00.

Due to changes in Linda’s financial situation she had been unable to make the full repayment each month to clear the loan, so she was continually being charged £25.00 and was unable to clear the outstanding capital. Some months she could not even pay the £25.00, so incurred further charges.

When John had assessed Linda’s personal finances the best solution was for Linda to repay the Cheque Centre with the help of a Five Lamps low cost loan with affordable weekly repayments, which would save her a huge amount of money in interest payments. 

John contacted the Cheque Centre to inform them that we would be settling the outstanding balance for Linda and arranging prompt payment to close the account.

Once it had been completed, John rang to let Linda know that she now just had one low fortnightly payment she said ‘It has been an awful and worrying experience but with the help from Five Lamps my finances are a lot easier to manage’

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April 2012

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