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Consumers `increasingly experiencing debt problems` Over-50s `better at managing credit card debt` New banking rules `may restrict access to loans` UK `must reduce consumer debt` 700k `on Debt Management Plans` Recession `could lead to financial problems for retirees` Charity sees increase in debt, mortgage and loan arrear enquiries Retirees` finances `may be damaged by rate cut` Consumers `aiming to reduce spending` People `increasingly turning to illegal loans` Children raised in credit crunch `may be better able to manage money` Many parents `pushed into debt by adult children` Young people `failing to protect themselves for debt repayments` Consumers in East Midlands `relying less on debt to fund lives` Plans set out to help people in debt PPI ban `could leave consumers without loan cover` Govt `must step in to stop debt addiction` Cash-strapped Brits `see fraud as more acceptable` People `should not rely on mortgage rescue plan` Consumers `to take out £3bn in debt consolidation loans by Easter`

People `increasingly turning to illegal loans`

11/03/2009

As a result of the ongoing economic problems, an increasing number of consumers in the UK are turning to loan sharks, it has been claimed.

According to a BBC report, hundreds of thousands of people are using them and "as the recession bites, no-one doubts that the numbers are rising".

According to David Sayer, head of the Illegal Money Lending Unit in the north-east of England, people will look for any source of income when they find themselves in "more and more dire straits".

He added: "There will now be new people needing the services of loan sharks ... We think there`s an awful lot more of it going on."

Recently, Citizens Advice stated that consumers in the UK are falling deeper into debt.

Figures released by the organisation suggested that clients at its bureaux across the country owed an average of £16,971 in July last year. This was two-thirds more than in 2001.

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