WARNINGS to avoid costly pay day loans and seek help from credit unions instead has been issued after Whitehaven residents are targeted.

Henry Wormstrup, a concerned Cumbria County Councillor, says residents in Mirehouse, have complained to him about receiving leaflets from loans company Satsuma Loans.

They say the firm is offering loans of £1,000 with 1,575 per cent APR (interest and fees).

Coun Wormstrup, for Egremont North and St Bees ward, said: "My concern is people who have difficult financial circumstances and are struggling. By these people [from loans companies] putting leaflets through the door, people think it will get them out of the situation and they don't see the interest [charges]."

"I plead with people who are in difficult financial situations to please go to the credit unions."

According to Satsuma Loan's own website, if someone loans £1,000 over 52 weeks, they will have to pay that back with £990.04 interest.

If someone loans £1,000 over 26 weeks, they will have to pay £914.90 interest.

Wendy Skillicorn, Cumbria County Councillor for Kells and Sandwith, and a director of Whitehaven, Egremont and District Credit Union, said: "I understand why people use them [loans companies]: if they've got a big debt, or fine, or unexpected bills to pay but I plead with them to stay away from these companies. It would be much better for people to see us at the Credit Union."

A Credit Union is a non-profit making financial co-operative, owned and run by its members, that offers an accessible savings facility and low interest loans to its members.

The three main aims are to encourage its members to save regularly, to provide loans to members at very low rates of interest and to provide members with help and support with managing their financial affairs.

People can seek help from Whitehaven, Egremont and District Credit Union, based in Whitehaven, and West Cumbria Credit Union, at Cleator Moor.

"Visit the credit union to see what we have to offer," coun Skillicorn said.

She added that there is a variety of other money advice services on offer at Citizens Advice Bureau and Christians Against Poverty centre in Whitehaven.