Your Politics: Debt

"People get into terrible debt paying for things like schoold uniforms.
But with these rates of interest they'll be paying the price for years to come."

Margaret Nolan, Tyneside

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Get involved

In the build up to Christmas it's more tempting than ever to get into debt. But while most of us borrow from banks or credit cards, those in the most deprived areas of the country only have access to private money lenders.

These companies charge rates of interest far higher than high street banks or buillding societies. So those tempted to take up the offer of "instant money" on the doorstep can find themselves struggling to pay back their loan for years to come.

Margaret Nolan sees the effects first hand. She lives on the Shiremoor Estate on Tyneside, where around 85% of households are in debt to money lenders - paying out an average of a third of their income.

The money lending companies say they're providing a valuable service - and warn that without them people would be forced to turn to illegal loan sharks.

But Margaret doesn't agree. She's set up a credit union offering loans to people at local rates.

Now Margaret and others like her are calling on the government to set a ceiling on interest rates, so private money lending companies aren't able to charge quite so much.

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Click here to watch the Your Politics report

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What you can do:

If you're in debt and need help, your local Citizen's Advice Bureau should be able to help. Search for your nearest bureau at:
http://www.nacab.org.uk/cabdir.ihtml

There's also a useful page on the different types of credit at:
http://www.adviceguide.co.uk/index/
your_world/consumer_affairs/credit.htm

For details of the campaign for fair finance, go to:
http://www.debt-on-our-doorstep.com

To find your nearest credit union, which may be able to offer more competitive borrowing, try the Association of British Credit Unions at:
http://www.acbul.org

And for the view of major money lending companies, along with advice on dealing with debt, visit:
http://www.ccauk.org