Christmas debts could push people into the hands of loan sharks
Merseyside is warned 'people believe the loan shark is their friend' as festive spending and bills rise
There are fears thousands of families across Merseyside could turn to loan sharks more than ever to get their finances back on track after Christmas spending.
This year there are concerns that more people might be tempted by offers of fast cash as the cost-of-living bites.
Last year 1 in 10 people ended up reaching out to illegal lenders to pay off the festive bills.
Cath Williams works for Stop Loan Sharks. They investigate and prosecute illegal money lenders.
Cath says loan sharks have many tactics to lure in victims.
She said: “One of the things we are seeing a lot of is where people believe the loan shark is their friend, particularly at the point of which the loan is only taken out for the first year.”
Stop Loan Sharks say criminals often work in small areas and it can be easier to stop them if people talk about it.
Cath told us: “Loan sharks are not going to travel 10 miles away to go and intimidate someone for £20 for this weeks payment. It’s gonna be around the corner.
“One of the big things with that though is, people don’t talk about it.
“So, people are there thinking it’s only happening to them and it’s happening to Janet two doors down and you know Mary who you talk to at the school gates.
“And if people got that collective sense of it, I think, they would be more likely to report it.”
Cath added: "One of the great things of Liverpool is you still have that sense of community, you still have those conversations over the fence.
"People can join together, people can have those conversations and sometimes that's all it takes.
"There is power in numbers and I think that's the benefit hopefully of somewhere like Liverpool is people will join together and say 'No, we don't want these people in our community, this isn't right'"
Carol Johnson-Ayre from Citizen's Advice on the Wirral explains that criminals use situations, like the cost-of-living crisis, to exploit the most vulnerable.
Carol said: "We've got an example of someone who started off lending fifty pounds from a loan shark and after about two or three years owed forty thousand pounds.
The loan shark kept saying you owe us more, so she had to keep borrowing again to get money food and fuel and bills.”
Cath told us the money owed can often escalate quickly but the pretend friendship can make it confusing.
She said: “It sometimes takes a long time for people to realise. ‘Surly, I’ve paid you back by now?’
“Or maybe they have to miss a payment, for a perfectly legitimate reason and the person doesn’t take it well.
“Maybe that’s when they realise ‘oh gosh this person isn’t my friend, this is something quite nasty.’"
The team at Stop Loan Sharks suggest those who need help call 0300 555 2222 for anonymous support.