Desperate times push nearly 70,000 towards loan sharks

As many as 67,000, or 7%, of those struggling with debts say they have already contacted a loan shark or doorstep lender, while a further 13% have considered doing so.

This is based on research by insolvency trade body R3 who have identified a group of 961,000 individuals who describe themselves as ‘struggling with debt but have not sought help'.

R3's President Steven Law commented: "Going to this source for financial resolution will simply build up a larger store of debt and create more pressure and stress. We must highlight the importance of obtaining professional advice over panic measures that will worsen the problem.

"Post-recession we stand on the brink of a personal insolvency crisis that will take years to work through the system as this finding indicates."

The survey also reveals that almost one in four individuals struggling with their debts (23%) say they are avoiding contact with people they owe money to, while 30% have not spoken to their family or partner about their financial problems.

"Clearly traditional fears of what others may think or the fear of bankruptcy is still putting people off seeking a solution to their problems. Unfortunately, avoiding the problem or going to the wrong source is likely to only increase the eventual likelihood of bankruptcy," concluded Steven Law.