Sheffield Star
29 March 2006
Aid to kill off loan sharks
Town Trust invests in Bond to help tackle poverty caused by high interest rates on debt
A drive to tackle poverty in Sheffield caused by loan sharks has been helped by the city’s 700-year-old Town Trust.
The trust is investing £100,000 in the Sheffield Investment Bond, an initiative which seeks to help people plagued by high interest rate ‘doorstep debt’.
As many as 60,000 households in the city could be trying to keep their heads above water by taking out loans from doorstep lenders who charge interest rates which may exceed 900 per cent.
Debts owed to the loan sharks cause health problems, undermine family stability and result in millions of pounds being lost to the local economy in loan repayments.
Companies, organisations and individuals are being asked to buy bonds worth £100 upwards.
Interest from the bonds will be used to provide affordable loans, money advice, counselling and access to savings schemes.
Investors have their cash repaid after five years.
The Town Trust has invested the largest single amount so far into the bond, which is managed by the charity Citylife.
Kim Staniforth, Town Collector at the trust, said: “As a grant giving trust we felt that the bond is the type of initiative that we should be supporting and our investment reflects this.
“We hope that our investment will act as a signal to other trusts to also support the Bond.”
Citylife chief executive Tim Jones said: “I am delighted that the Town Trust have shown their support for the bond by becoming the largest single investor so far.
“It is great to have such a prestigious trust on board, and I hope that others will now follow the trust’s lead and invest in the bond.”
Individuals and businesses can help by buying a Sheffield Investment Bond by cheque, debit card or by payroll deduction, or by making a donation. Email info@sheffieldbond.org or call freephone 0800 652 8776.
NEWS