Community 'bank' sees 25% increase in members last year

Community ‘bank’ saw an increase in users of 25% in 2014
200 new clients approached Community Savings Ltd for help with finance
Executive chairman Brian Curtis says that people of all ages are affected
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A CHARITY which helps Islanders who are struggling with debt and who need emergency loans saw a 25 per cent increase in client numbers in 2014.

Advisers at Community Savings Ltd last year had 200 new clients who approached the charity for help in managing their finances.

And more young people are being educated about how to manage their finances sensibly before falling into a spiral of debt, according to a report published by the charity yesterday.

The non-profit organisation, part-funded by a States grant, was set up in 2002 to offer bank accounts, budgeting advice and mentoring for Islanders struggling to balance the books. They typically see around 1,000 Islanders a year.

Speaking following the publication of their annual report, the head of the charity said they had experienced ‘another busy year’ with a continued high demand for new accounts as well as applications for emergency funding.

Brian Curtis, executive chairman, said: ‘The reasons people come here are standard – either they have been made redundant or they have had a relationship breakdown or they have fallen on difficult times. This affects people of all ages.

‘There does seem to be more young people than older. We are seeing the beginnings of a trend emerging although we would need to see the results over a few years to establish that.’

Last year the charity saw an increase in demand for their outreach service, with five secondary schools booking advisors to teach pupils how to manage their money and to be aware of advertising before sinking into debt.

Melanie Cavey, a development officer with the outreach service, said young people were being ‘bombarded’ with advertising on their phones, computers, billboards and in the media.

She said: ‘We discuss social media with them and also online shopping. Part of the programme is to make them aware of advertising and the impact of it. It’s important they are made aware and are not sucked into it.’

Last year the average age of their clients was between 30-50 and two-thirds were men. Around 75 per cent of clients were either divorced, single or separated, and 43 per cent were Jersey born, with 39 per cent being British.

Mr Curtis said: ‘We see some people whose financial problems could have been resolved months earlier very easily, but they buried their heads in the sand. It is all well and good helping people when they have problems, but we can also educate young people so they do not end up in the same situation as their parents.’

The report also said that the charity’s clients who are in work were employed tended to be in industries such as the trades, care work, hospitality or retail.

Mr Curtis said that while it was true some clients struggled to get by on low incomes, he said the charity can help Islanders to make certain sacrifices in order to budget more effectively.

He said: ‘It can sometimes be painful at first to let go of things such as the Sky TV subscription, but people get used to it. It’s all about financial sophistication.’

HELPING a terminally ill man to spend his last days on his beloved boat is just one of the reasons why Stuart Stables loves his job.

He is executive officer of Community Savings Ltd, which provides banking services to Islanders who would not otherwise be able to access them.

The charity helps people to make monthly savings, offers a financial mentoring and support service to those who are struggling with their money, and even provides emergency loans to those in need.

‘We have an emergency fund scheme that can allocate money to help people – it could be for things as basic as the fact that they haven’t got any money to put food on the table that weekend, or the washing machine has broken down and they have three kids and can’t keep up with things and have no means of paying for things which are a basic necessity of life,’ he said.

More people than ever needed financial help from the charity last year, and there was a 20 per cent increase in the number of emergency loans which were paid out.

‘It might seem a small amount of money because it tends to be a few hundred pounds, but it can be a life-changing support line for some people,’ Mr Stables said.

The charity also saw a 60 per cent increase in the amount of accounts that were opened in 2013. ‘We are the only organisation that does this kind of thing, and I think that if we weren’t here, there would be hundreds of people who would be without the lifeline that we provide.’

However, Mr Stables, who grew up in the coastal village of Bo’ness in Scotland, said that it was not only unemployed people who need the charity’s service and that the organisation helps people from all walks of life.

Over the last few years, due to the poor economic climate, they are being contacted by more and more Islanders who have previously been financially stable.

‘There have been job losses and cutbacks in the last few years,’ he said, ‘and for people who were quite comfortably well of, if they lose their job it has a major impact on their life.’

While the charity cannot help with major financial problems, it does work closely with other organisations such as the Citizens Advice Bureau in order to help anyone who comes through their doors.

Mr Stables, who lives in St Mary with wife Mandy and children Jess and Cameron, said that the charity also sees a lot of people who need financial support due to illness in the family.

‘While we can provide emergency loans, there are also certain cases where we can provide a grant if an individual would struggle to afford a loan.

‘If people are ill and have to go out of the Island for treatment, there is certain amount of States support for that, but not for people to go with them. If someone is in, say, Southampton for six weeks, the States will get them over there but family members don’t get support to be with them.

‘We have an emergency loan scheme, but in certain cases when somebody says I need this money and can’t afford to pay it back, we will just give it as a grant because there are cases when it seems unreasonable for them not to be able to do something they really need to do.’

Mr Stables first became involved with Community Savings in 2010 after spending more than 20 years in the finance industry.

‘I just thought it was an area where I could use my skills and knowledge and experience in a way that was adding real value to society and to help people’s lives.

Can I have an account at a bank and still open an account with CS?

Yes, and if you want help planning your expenditure you can transfer funds to your CS account.

Is there a minimum amount of money I must keep in my CS account?

Yes. £1, and we expect you to save a minimum of £5 every month.

How long do I need to have lived in Jersey before I can apply for funding or open an account?

CS aims to help residents who are members of the Island’s community. You must be permanently resident in the Island but not necessarily residentially qualified. CS reserves the right to make any decision regarding residency. You might have been living and working in the Island for some time; perhaps you receive a Jersey pension or you have been working in the Island and have lost your job.

How do I top up my pre-paid Alto MasterCard?

Simply come and see an adviser or call the CS office or your CIG administrator and ask for money to be transferred from your account to your card.

What sort of financial help can CS provide?