A CLOTHES SELLER was on the brink of being evicted from his home before discovering a "life-saving" scheme - and now he's a successful business owner.
Len Blackwood, 67, fell drastically behind on his rent payments in 2018 after health problems led to him losing his £22,000-a-year job.
Len Blackwood was almost made homeless before a scheme saved him and his familyBut now a scheme that almost anyone can access has helped him out of debt.
Former Gatwick baggage handler Len, from Lewisham, was diagnosed with early onset arthritis in his knees caused by decades of lifting heavy baggage, which meant he was forced to take time off work.
But after initially being signed off on sick leave, he was advised he wouldn't be able to return to his role or it would make his condition worse.
I'm a property expert - my guess for the cheapest time to buy a home this yearDoctors also said Len shouldn't work any other physically demanding jobs.
This meant he had no income with which to cover his hefty £1,400 a month rent, which had just increased by £200 a month.
And his wife Hyacinth spent most of her time caring for their adult son, who has special needs, so she wasn't able to make up the shortfall.
"Like many people in private rentals, our rent felt exceptionally high and I suddenly lost most of my income, so we inevitably fell into arrears," Len said.
"The debt quickly stacked up and before I knew it we were facing eviction.
"It was just crazy how quickly things fell apart."
Len was desperately searching for help clearing his debt when a friend asked whether he had tried borrowing from his local credit union, Lewisham Plus.
Credit unions are organisations where local members pool their savings together in order to lend to one another at far lower rates than mainstream lenders.
They collectively have around two million members in the UK, but are still widely considered by experts to be underutilised.
Inside Camilla's £850k 'guilty pleasure' country pad - and Charles 'hates' itLike many credit unions, Lewisham Plus has a partnership agreement the council to help struggling tenants get out of debt and prevent them from ending up homeless.
In Len's case, Lewisham Plus helped him clear his arrears through its Homeless Prevention Service.
Funded by two London boroughs, Lewisham and Bromley, the service allows local members to pay tenancy deposits, pay off arrears to avoid eviction or pay for essentials such as flooring if there are no other provisions.
A representative from Lewisham Plus came to court with Len to testify that it would loan him the money to clear his arrears, which his landlord agreed to.
The council then approved a low-cost loan of £2,000 with 1% interest per month, which Len repaid in instalments of £122 over 18 months - equal to £2,200 in total.
He has now paid off his debt in full and has even managed to take out extra loans from the credit union to start up his own business in clothes reselling.
"I didn't know what to expect when my friend referred me to Lewisham Plus, but they were so helpful with my housing situation and very kindly came to court to vouch for me," Len said.
"They took a real risk by lending me the money as they didn't know I would pay it back, but I'm so glad they did as it honestly saved my family and helped me rebuild my life.
"My rent is even higher now, I pay around £2,000 a month, but the credit union has helped me with loans to build up a business and I'm currently not in any arrears."
Lewisham Plus Credit Union says it has granted loans of over £1million to struggling tenants in Lewisham and Bromley boroughs in London since 2010.
More than 1,500 families have contacted the credit union to ask for help paying off rent arrears.
What are credit unions?
Credit unions allow members to borrow money at a very low cost compared to mainstream lenders or expensive payday lenders.
They may also offer savings accounts and current accounts for members with historically competitive rates.
Credit Union interest rates are currently capped at 3% per month in England, Scotland and Wales and 1% in Northern Ireland.
Members tend to be united by a common bond, such as that they're residents of a certain area, members of a trade union or employees at a company.
Credit unions' popularity has steadily increased over time, with the organisations collectively lending over £2billion to members in 2022, up from £1.6billion in 2019.
They're particularly helpful for anyone with a poor credit record who may not be able to borrow from a mainstream lender.
Tim Vine, head of international finance at Dun & Bradstreet, explained: "As credit unions are not-for-profit organisations, they can often be more risk tolerant when lending.
"This is particularly helpful for people that have a chequered credit history and may have been declined credit by traditional lenders such as banks."
They are regulated by both the City watchdog, the FCA, and the PRA, part of the Bank of England.
Members' money is protected up to £85,000 if a credit union goes bust through the Financial Services Compensation Scheme (FSCS).
You can find your nearest credit union through the Association of British Credit Unions Limited website.
How else can I get out of rent arrears?
If you are struggling to keep up with your rent payments to your landlord, there are several other ways to get back on track without borrowing money.
If you need time to get yourself together or work out how to get the money, you can use the government-backed Breathing Space scheme to clear your head.
The scheme means your landlord cannot contact you about arrears, make you pay arrears or add interest or charges to your bill for 60 days.
You can use the scheme once every 12 months. To access it, you'll need to talk to a debt adviser.
If you still don't know how to pay the amounts in full, ask your landlord if you can arrange a more feasible repayment plan.
A repayment plan is when you pay your landlord extra money on top of each rent payment to clear your arrears gradually over time.
Don't offer to pay more than you can afford, as missing payments repeatedly can result in you being evicted.
Talk to a debt adviser before agreeing to a repayment plan. If you're happy with your plan, make sure it is agreed in writing.
If you are on benefits, you may be able to pay your rent arrears out of your monthly benefit payments.
You can ask for arrears to be paid from your benefits if you get Housing benefit, or the housing costs part of Universal Credit, according to Citizens Advice.
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