MORE middle class people in Waltham Forest are seeking financial help as the economic downturn worsens.

The Credit Union loans money at low interest rates and has traditionally been used by the less well off.

But in the last year there has been a surge in higher earners with cashflow problems seeking loans which are no longer available from high street banks.

Claire Walters, Waltham Forest credit union chairwoman, said: "People join credit unions to become eligible for low cost loans for any purpose, but particularly to pay off loan sharks and doorstep lenders, to get a rent deposit, to pay back to work costs like clothes and travel."

Waltham Forest credit union is just about to sign up its 3,000th member while two years ago it had just over half that amount.

A Walthamstow solicitor is just one of many who have switched from a bank to a credit union.

He discovered his clients could not pay his legal fees because of the recession so he joined the credit union.

An instant £750 loan helped to tide him over until his clients had paid his bills.

Two teachers have also ditched high street banks in favour of the credit union.

They moved to a new house in Leytonstone last year but as the credit crunch began to bite, they found their household bills were growing and their credit card payments for their new kitchen were becoming difficult to manage.

After shopping around they discovered the credit union offered the most competitive rates.

Two weeks ago Iain Duncan Smith MP visited the credit union's Truro Road offices to find out more about the organisation.

Mr Duncan Smith said: "This is great for people on low incomes, especially in the current financial environment with people finding it difficult to deal with banks, some people might turn to loan sharks."

For more information about the credit union call 8520 8740.