Allison – I couldn't save a penny before. Now I might have a holiday next year

Allison had struggled with debt since her children were born over 20 years ago. By 2011, her situation had become so dire that she was considering suicide.

"I had no one to talk to about my problems," said Allison. "I've been in debt since the kids were little. At the time, when someone offers you vouchers for Christmas or something from a shopping catalogue, you think, ‘Oh, I can manage that.' But then it adds up and you have to take out a loan to cover it, then another to cover that, and another.

"One time they came in and took away the TV, the cooker and the washing machine. I was left with nothing. I was in thousands and thousands of pounds worth of debt. A new letter would come through saying I owed £3.80 a week and I couldn't afford it, never mind being able to have food, heating or electricity.

I couldn't sleep from the worry

"It reached a point where I couldn't sleep from the worry because there was letter after letter coming through my door and people constantly calling. I thought killing myself would be the only way out."

Allison's friend mentioned she was going to a workshop run by Five Lamps, an organisation that helps people to improve their finances, find work or start their own business. Allison decided to join her friend at the workshop where she met John Hird, a Senior Loans Officer from the Five Lamps Financial Inclusion Team.

John explains: "Our Capacity Builders Workshops are held in the community to allow people to talk about their situation and provide a financial education so they can begin to solve their problems. We discuss budgeting, debts, doorstep lenders, alternative forms of finance, utilities and how to save money.

"At the end of the workshop, Allison came up to me and asked for a follow-up meeting to look at her financial problems in more detail. We couldn't help her with a low-cost loan because of her situation, but I contacted all her creditors to arrange manageable repayments on her behalf instead.

Not just a debt problem

"When someone comes to us for help, they aren't just coming to us with a debt problem. Their situation will also be affecting their mental and physical health, often preventing them from working.

"Once we have looked at how we can improve someone's financial situation we also offer training to help them get a job, or maybe give them support to turn a hobby into their own business. Now that Allison isn't constantly worrying about her debts, she's focusing on getting a job."

Allison has recommended Five Lamps to friends and family in similar situations and is now managing to save money for the first time in her life through her local Credit Union, which encourages members to save regularly and provides affordable financial services.

Saving money for the first time

"John was so quick to sort my problems out," Allison adds. "It was an instant weight off my shoulders and he still keeps in touch to make sure I'm OK. Now I'm able to save money for the first time in my life with the Credit Union. It's only five or ten pounds a fortnight, but eventually I might be able to go on a holiday.

"After seeing the support I received, my sister, daughter and friends are all going to Five Lamps to sort out their problems too. I've got peace of mind and I can't thank Five Lamps enough for that."

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