One innovative charity based in Teesside thinks it has the answer to helping households deal with money problems. Instead of running to high street lenders that charge four digit interest rates, Five Lamps offers loans that carry two digit interest rates. Some may even qualify for grants.
Five Lamps is more than your typical registered charity. Sure they provide grants to some people in need. This is sorely needed by some households that have no ability to repay a loan.
Few charities also serve as a community development finance institution. This means that the organisation will take a chance on borrowing projects that most banks would never consider. They are willing to accept a higher risk of default because some projects are crucial to the community welfare.
One awesome product that Five Lamps offers is a consolidation loan that combines unaffordable high street loans. it will help borrowers save money on their annual interest expenses. Instead of having to repay three payday lenders at 5,000% APR, a borrower could simply pay off the loans at once using a personal loan from Five Lamps. The Five Lamps client both saves money and it simplifies their finances/budgeting. It helps people finally break the cycle of poverty that payday loans bring.
| Amount borrowed | £100 |
| Upfront fee | £10 |
| Representative APR | 120% APR |
| 12 monthly payments | £11.60 |
| Total charges | £149.20 |
The goal is for people to choose this personal loan product instead of the high-priced alternatives. The organisation offers this example of a £100 loan. While the comparative cost of the credit (£49.20) is high when considering the amount borrowed, it is a fraction of what the average high street lender would charge.
The personal loan product is designed to be an alternative to other forms of borrowing. It can help people that have those unaffordable loans that so many people turn to in an emergency. It is available to anyone who meets minimum qualifications.
This can include poor families who have a limited credit history and gaps in employment. It also includes individuals who earn good money but need some quick quid in a pinch. The repayment is designed to be affordable to anyone, with payments spread out over a year or more depending on the loan amount.
Citizens of North East England may call the loan hotline at 0300 111 0556 to enquire about the qualifications as well as to request a loan application. Or read more details on how debt consolidation loans work.
Through the Back on Track Stockton Borough grant programme, residents of Stockton-on-Tees may receive grant awards that help with basic living expenses. The grant programme helps households through an emergency crisis that might otherwise cause severe financial hardship.
Grants can be for household goods such as food and clothing. Some clients could receive help with heating. In situations where emergency travel is required, a person could receive a grant to help them cover the costs. For those in transition from one home to another, settlement costs could help cover storage and removal costs.
The NETs programme serves residents of Northumberland who need help with an emergency. Emergency support could include donations of food and clothing, or it could assist with heating. Travel expenses could also be covered in an emergency.
What is really unique about this service is that it provides loans and sometimes grants to those who have been denied budgeting loans or advances from DWP. Local residents may simply call the NETs hotline at 0300 303 1931 to find out more about this opportunity. Services are provided throughout Northumberland Council thanks to a collaboration between Five Lamps and VoiCeS Northumberland.
Durham residents also have access to crisis grants that assist with similar living costs, moving and travel expenses. This can also help when someone has been forced to move and needs help getting their new household in order. Residents may call 0300 111 0557 for more information.
Homeowners who are struggling to maintain their homes could get some assistance with repairs or weatherisation. Weatherisation simply involves the use of upgraded materials to improve the efficiency of home heating. It could include installing new weather stripping around doors or the use of proper insulation. It could even mean replacing an old inefficient boiler.
The Helping Hand Loan Scheme helps clients restore the proper function of their home and reduce heating bills. It preserves property values by funding needed repairs, such as a roof replacement.
To access this home improvement scheme, residents may call the number provided by their local council:
Five Lamps is truly a community service organisation, assisting with both grants and lower cost loans. It provides access to emergency funding when other agencies have turned down requests. Programmes are available to those who live in North East England.
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