Sheffield & South Yorkshire

Up to 40,000 people in Sheffield 'trapped by debt'

Up to 40,000 people in Sheffield are "trapped in a spiral of debt", an economics expert had warned.

Professor Paul Mosley said many families were being forced to turn to loan sharks because they could not get access to high street banks.

Mr Mosley, from the University of Sheffield, said this meant they were facing extortionate interest rates.

Laura Swindell, who took a loan out, said: "The fact that you have someone knocking on your door isn't very nice."

Mr Mosley, from the university's departent of economics, said such high-cost lending could see a £500 loan cost an additional £400 in interest.

"In the Sheffield area, about 40,000 people are trapped in a spiral of debt and poverty because they cannot borrow from the high-street banks.

"They are forced into much more expensive ways of borrowing simply to afford day-to-day necessities."

He added: "Anyone paying those rates will find it difficult to ever escape from the debt trap."

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