People desperate for money are often easily seduced by the quickness and ease of payday loan companies, thinking they have no other options.

They are then charged astronomical rates of interest and find themselves falling further into debt.

Few people know that there is an alternative option in the form of the credit union.

But credit unions have suffered from a reputation problem – many people under the age of 30 have never heard of them and older generations see them as exclusively for the poor. Simply, a credit union is a non-profit bank that is owned by its members and offers loans to people who might be turned down by banks.

They also have a social conscious, refusing to lend to people who cannot afford the repayments and insisting that people save with them when they take out a loan, even if it is only £1.

Now, in a world where money is increasingly tight, the humble credit union is becoming more important than ever.

This has been recognised by the Government, which recently invested £38m into credit unions to combat the inflated interest charged by payday loan companies.

In Kingston, Surrey Save is trying to fight the stuffy reputation credit unions have and provide those in need with a viable alternative to payday loan schemes and high street banks.

Surrey Save’s chief executive Valerie Walwyn is keen to stress that the company is not a charity.

She says: “We are a business, but any money we make is put straight back into the business to help more people.

“Since the most recent financial crash, high street banks have been far more selective about who they’ll lend too. Worse still are the payday loan companies who lend irresponsibly and get people into a vicious cycle of borrowing.

“We recently had an application from a doctor who was earning £100,000 a year, but we wouldn’t lend to him because he wasn’t able to pay the loan back and we are not here to help people live outside their means.”

Surrey Comet:

Surrey Save chief executive Valerie Walwyn. picture: Ying Shi

Surrey Save also know money troubles can be embarrassing and have opened outreach centres run by volunteers in Kingston, New Malden and Norbiton under the banner of Kingston Savers, where people can receive confidential advice.

Last year the company lent £80,000 in Kingston alone with people borrowing between £250 and £7,000. One customer, who asked to remain anonymous, said: “I found out about Surrey Save when I was experiencing financial difficulty, and realised my finances were having a negative effect on my health and day-to-day life.

“Having been a regular user of payday loans, I was in a cycle that I couldn't break; almost my entire wages would pay off the previous loan, forcing me to take another out to survive for the next month. This had been going on for two-and-a-half years.

“The people at Surrey Save have been supportive in helping me make the first steps to managing my finances.”

Ms Walwyn said: “When you actually need money the places that offer a lower rate of interest are less inclined to lend and that’s where we come in. We don’t judge people and as long as we think you have the means to pay back a loan we will be happy to help.

“To my mind there are three things everyone should remember. One, don’t hide from your debts. Two, get hold of your credit history.

"Three, be selective about where you apply for a loan. If you follow this advice you won’t go too far wrong.”

To find out more about Surrey Save and the outreach centres visit surreysave.co.uk.

Surrey Save is supported by Love Kingston.

To find out more about how to donate and get involved with Love Kingston visit love-kingston.org.uk.