Thousands of people turn to 'pay day lenders' as a last resort for borrowing and emergency funds and most of these people don't realise how damaging this is to their credit ratings and therefore their long term borrowing options. If you add to this that many get stuck in a borrowing cycle after taking out a payday loan - it is simply a dangerous option that is not worth taking.
Sky high interest rates also means that essentially you are getting a small loan for massive price that can seriously affect your current sitation as well as your long term financial future.
So...the idea is simple!
I want to set up a company that doesn't charge massive rates of interest on small funds, but gives you the money you need for free....thats it! This would work through a system of regular donations made by the UK population that would go into a 'funding pot' that would then be available to allow funding to anyone wanting a helping hand for anything important in their lives. There would be a limit of £500 on what any one person would be funded per year but other than that the money could be used for absolutely anything from a new washing machine, a charitable donation or to pay off small debts - all without the need of a risky 'pay day' loan.
There are over 64 million people living in the UK. If just 10% donated £2 per month to the fund then we could raise over £153 million per year, leading to more than 300,000 £500 payouts. In addition the company would be set up to automatically pay out a percentage of total yearly funds raised to both local and National charities.
The potential for this is huge and the inital funds I need are required for the detailed formation of this new venture. From branding, marketing, launch and regulation.
I want to take this small and simple idea, make it big and change the way we help ourselves achieve the little things in life! and to do that I need your help.