A PROJECT to keep the loan sharks at bay in some of Bolton's poorest estates is finally under way.

Residents yesterday celebrated the official launch of the town's second credit union at the New Lane Residents' Centre.

The Breightmet Credit Union extends as far Top o'th' Brow in the north and Darcy Lever in the south.

Among the first to sign up were married councillors John and Linda Byrne who live locally and are Chairman and Vice chairman of the credit union board.

The community run bank allows members to save a small amount each week and eventually apply for low cost loans.

Volunteers and town hall workers have spent several years getting the scheme underway and now organisers hope to recruit 100 members by the end of the year.

Community education worker Bill Lovat who helped residents set up the project is in no doubt it is needed.

He said: "It is not just about cheap credit, it is about allowing people to save whatever they can afford on a regular basis. "Many organisations set a minimum deposit of about £10 but we allow people to save a quid or two each week.

"A small nest egg makes a lot difference if you are on benefits or in low paid or temporary work.

"Loans can help in the long term by stopping people going onto more expensive credit."

Organisers estimate borrowing £100 even from some legitimate companies operating on the estate means paying back £150, compared to the £106.50 paid back to the credit union.

But Mr Lovat added: "It is going to take a while to convince people we are a well regulated community business and not a round the corner savings club. "We will start off slowly until people gain confidence."

Bolton's first credit union at Johnson Fold has been running for about six years and has proved so successful it has been paying out dividends to savers.

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