New Money Advice Service Will Help People in North Glasgow

A NEW service to provide tenants and residents in North Glasgow with affordable loans and basic bank accounts has been launched by North Glasgow Housing Association and Scotcash.

The association and Scotcash are working together on an innovative six-month pilot which sees a full-time Loan Advisor based in the association’s offices. Emma Paterson from Scotcash will be available to see clients Monday-Friday 10am-4pm and will offer a range of services and products including affordable loans, saving accounts, white goods packages, basic bank accounts and money advice.

Scotcash were set up to help the citizens of Glasgow gain access to financial services which, due to either their past or current situation, they have been unable to access. Many clients are single parents, in rented accommodation and dependent on benefits. Scotcash General Manager Leah Cameron is delighted with the partnership with North Glasgow Housing Association, she said: “Scotcash are based in the city centre but a lot of our customers aren’t so our partnership with North Glasgow will make it easier for their tenants and residents to make appointments and it will also help us to reach many more people who are financially excluded in the city'.

The three most popular reasons for taking out a Scotcash loan is home redecoration and household goods, Christmas presents and help to finance a short break away for the children. An average loan size at Scotcash is £553 over 42 weeks. A £500 loan repaid over a year would cost a Scotcash customer £84.52. With a big home credit or doorstep lender it would cost £410.

Personal debt across Britain rose to £1.5trillion last month, up £629m since August. Provisional figures from Citizens Advice Scotland (CAS) for 2010/11 show a 6% increase in debt cases. That’s the equivalent of 400 extra cases for every day of the year.

Three out of the top six areas on the Scottish Government’s Multiple Deprivation Index are in North Glasgow. Ann Marie Devlin, Deputy Chief Executive of North Glasgow HA said: “People living in our communities have to make tough decisions on a daily basis. By providing access in our offices to money advice, bank accounts and where appropriate affordable finance Scotcash can help improve the financial situation for many people in North Glasgow.”

Scotcash is a Community Development Finance Institution. There are 70 such institutions in the UK, with an estimated 20,000 clients. They are different from credit unions, as they offer loans without the requirement of clients to save regularly.

Testimonial from Scotcash Client of 4 years
“ I have never had to use a loan shark, but I know plenty of people who have. There’s more to Scotcash than just getting a loan. They also offer money advice, which I’ve found great.” “You get yourself in such a mess, I’d borrowed money to pay for a suite, but the payments were too high. They spoke to the company and managed to get the payments down. I first went to them because I wanted a new fireplace and to decorate the flat. If you are having trouble with your repayments you only have to phone them and they are really helpful. Other companies send you threatening letters. It’s a brilliant service.”