PLANS to tackle North Ayrshire’s payday loan shame have been unveiled after it was revealed 10,000 residents use services charging crippling interest rates.

North Ayrshire Council will roll out a number of initiatives aimed at reducing the impact non-standard lending is having on our communities.

A review confirmed around 10,000 of the area’s 138,000 residents use high cost payday lenders, home credit, pawnbrokers, and rent-to-own outlets.

And that left North Ayrshire residents paying back the horrific sum of more than £5 million in interest.

The council action plan includes investing £50,000 in 1st Alliance Credit Union to support their services which will allow it to increase its membership by almost 1,000.

1st Alliance will also visit secondary schools to promote financial management skills to pupils. The council is also seeking to identify a range of lower cost alternatives that will meet the borrowing needs of North Ayrshire residents.

Social enterprise models, which provide cheaper alternative credit, savings accounts and household goods at a lower cost than High Street suppliers, are currently being explored.

In addition, a review of money advice and debt advice services is underway to ensure they continue to meet the needs of our communities.

The council is also encouraging its Community Planning Partners to promote use of credit unions.

Councillor Ruth Maguire, Cabinet Member for Finance and Corporate Support, said: “We are committed to ensuring that those facing financial difficulty receive the best possible support.

“The impact of high cost short-term credit in North Ayrshire is considerable but the actions we are taking will help to provide individuals, families and households with cheaper alternatives and reduce high interest payments.”