DEPRIVED residents are being given lessons in managing their money in a bid to reduce high levels of debt.

The free scheme has been set up by the East Lancashire Learning Partnership and East Lancashire Adult Learning and is offered in the form of four three-hour sessions.

Those attending Money Buddies' are given advice on managing their cash and tips on avoiding falling into traps that see them amass high levels of debt.

Tutors will also explain often misunderstood financial terms such as annual percentage rate (APR) and will teach people how to calculate interest so they can apply their knowledge to practical situations.

Bosses of the partnership hope that those who have attended will then pass what they have learned to their friends and neighbours.

East Lancashire's most deprived communities are being targeted for the scheme, which is run at community venues.

It has been running for nine months and has been hailed a success.

Courses have been staged by the Hyndburn and Ribble Valley by the Council for Voluntary Services, Rossendale Credit Union and two at Burnley Access Point.

Now the latest course is being run by South West Burnley Community Enterprise.

A spokeswoman for the South West Burnley Community Enterprise said:" South West Burnley is one of the most deprived areas of the Uk, It is actually in the top ten percent of deprived areas.

"This is because of the high levels of unemployment combined with the low wages and this is why we decided to run the scheme."

Catherine Lightbowne, a spokesperson for East Lancashire Learning Partnership, said a fifth of people in East Lancashire were in debt by doorstep lenders. These loans can have interest rates of up to 500 per cent.

She said: "We decided to set the scheme up to try and reduce the number of people in the area who are in serious debt.

"Hopefully once they have learnt the information they can pass it on to others.

"The schemes so far have been a success and we now want to run more to spread the word."

Coun Anthony Lambert from the Trinity Ward said: "The scheme should be very beneficial to people in the area because people often get confused about financial matters and it is so easy for people to get into debt."

The money buddies' will receive a certificate in recognition of their new skills and to encourage them to share their knowledge with others in the community.