More Lambeth residents are spiralling into debt and could turn to loan sharks to avoid bailiffs, according to a charity providing free debt advice.
Lambeth is one of the worst personal-debt affected boroughs in London, according to charity Capitalise.
On average, residents seeking help from them are trying to deal with £13,105 of debt on a monthly income of just £902.
The charity’s Up To Our Necks In It report says personal debt in the borough is deeper, more widespread, more complex and more urgent since the recession, and creditors are being more aggressive in recovering payment.
The announcement comes as Lambeth Council and debt-management organisations urge residents not to turn to loan sharks for a quick fix.
The fear is more residents will turn to illegal loan sharks as creditors get more aggressive and turn to bailiffs and court orders to collect debt.
Between 2007 and 2008, repossessions of assets increased by 40 per cent across London according to Capitalise.
Graham Fisher, CEO of Toynbee Hall, the charity leading the Capitalise partnership, said an integrated approach was needed between local and central government and the voluntary sector to protect residents.
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