More than 1 in 3 Northamptonshire people are financially vulnerable

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More than a third of Northamptonshire people are now living in ‘financially vulnerable circumstances’.

These are the results of a two-year UK study from not-for-profit financial inclusion organisation Fair4All Finance, which has concluded that 37% of people in West Northamptonshire and 39% of people in North Northamptonshire are now financially vulnerable.

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The report also found that 37% of households in the wider East Midlands suffered from financial vulnerability – a rise of 17% in the past two years – and cited factors such as rising living costs, low or unstable incomes, persistent debt and a lack of ‘safety nets’ such as insurance, credit and savings among the factors which leave millions of households living in financially vulnerable circumstances.

Credit unions have been highlighted in the report as ‘a vital source of support for communities and households who have been rejected by mainstream banks’.

Financial vulnerabilityFinancial vulnerability
Financial vulnerability

Richard Munro, Interim Chief Executive Officer at Commsave Credit Union, whose headquarters are in Northamptonshire, said: “It’s extremely concerning to learn that more than a third of of adults, both in Northamptonshire and in the wider East Midlands region, are living in financially vulnerable circumstances.

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“Over the last few years, we’ve witnessed the impact that cost of living challenges have had on many of our members, and the problems are not going away. Indeed, we continue to see members presenting with significant financial difficulties on a regular basis. It is clear that large numbers of people are struggling to manage, leaving them vulnerable to even minor changes in their circumstances.

“We do all we can to help our members manage their money effectively, from providing informational resources on our website and app through to the dedicated, one to one support that our Member Solutions Team deliver on a day-to-day basis.

“We’ve also recognised that, due to the complexity of the situations many members find themselves in, that we alone can’t provide all the answers. Many have mounting debt issues that require specialist, professional advice. We’ve therefore partnered with Citizens Advice to provide for an independent debt advisor to help members deal with more in-depth problems, giving them access to the support that can help them find the right resolutions.

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“It’s incredibly important that those struggling financially know help is out there and don’t struggle in silence or turn to predatory lenders. At Commsave, we hope to support everyone in our community to access fair and affordable finance.”

Fair4All Finance’s findings show how the scale and severity of financial vulnerability has grown in every part of the UK, as high living costs leave more people facing difficulties and add pressure to those who were already at risk.

Diane Burridge, Interim Director of Innovation and Development at Fair4All Finance commented: “Financial vulnerability is a reality that registers with millions of people in all corners of the nation. Inflation has eaten away at the spending power of people who were already struggling to get by, as well as those who have fallen into difficulty for the first time.

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“Everyone needs access to financial products to go about their daily lives, manage their money and be economically active. Yet millions of people are locked out of the financial system, unable to access safety nets that others rely on, like credit and savings.

“Our findings leave no room for doubt that the current financial services system is not working for everyone. Industry and policymakers must unite to address the increasingly desperate situation facing millions of adults in financially vulnerable circumstances.

“For people who are financially excluded, many could look to make more use of credit unions and community development finance institutions (CDFIs) in their communities. They provide a range of innovative products that are tailored to people that might be in financial difficulty, helping people to become more resilient and change their relationship with money.

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“No-one should be left to fend for themselves when credit unions and CDFIs have their doors open. We urge more people to seek out support from trusted organisations in their local communities, rather than struggling in silence or taking high risks with illegal money lenders.”

Find out about how Commsave Credit Union can help: https://www.commsave.co.uk

Read the Fair4All Finance report in full here: https://fair4allfinance.org.uk/financial-vulnerability-across-the-uk/