Agencies helping families out of a desperate debt spiral are busier than ever before. Some Bradford families on low incomes have built up six figure debts. And the blame is being laid on companies offering larger and larger amounts of credit, reports Sarah Walsh.

The ease with which people can get credit these days makes it understandably tempting.

But an increasing number of people, in Bradford and throughout the UK, are getting dragged down into an out-of-control spiral of debt.

In the worst cases, parents have no cash left to put food on the table for their children - and yet it can all start so innocently, says John Kirkby, director of the Bradford-based charity Christians Against Poverty.

"If you are a young couple getting married, you expect a new cooker, fridge, washer and three piece suite," he said. "You expect it. Finance companies meet that need by making credit easily available. The problem is that it can snowball.

"Then, all it needs is for one of the earners in the household to become ill, or get made redundant, or have a child - and they're in trouble."

Workers at CAP and at the city's busy Citizen's Advice Bureau in Canal Road have noticed an alarming recent trend of people in hock to greater and greater amounts.

They put this down to 'irresponsible lending' by companies which extend credit without asking enough questions, and give out unsecured loans of several thousand pounds. Retailers offer up to £2,000; High Street banks give loans of several thousand. And someone who gets trapped into taking out a second raft of loans to pay off their first loans can do so - because not enough checks are made.

John Kirkby, who gave up his job in the financial sector to found CAP, said: "I worked for 17 years in the financial industry myself, I know a bit about it.

"A major factor is irresponsible lending. Companies lend increasingly large amounts of money, they are competing to lend more and more and more.

"Our insolvency department here in Bradford has been here four years, in our first three years we handled 11 cases but we did six just in the last month. We've had a ten-fold increase in insolvency and there's a massive increase in the incidence of multiple debt, people owing 30, 50 grand who are on low incomes, under £15,000. I thought I'd seen it all - people not being able to feed their kids - but I am still taken aback in some cases."

Mr Kirkby helped one man facing ruin with £38,000 debts, by confronting one of his lenders. The lender - a High Street bank - was threatening to throw the book at the man, who had borrowed £5,300. "I wrote to the company concerned, which I won't name but it's a household name. I told them, this man is insolvent, but they said they had to get their money back. They weren't being very helpful."

The firm's attitude changed when they were challenged over their lending policy.

"I asked them to fax me a copy of this man's loan application form. One sheet of paper came through. The loan was for £5,300 and the company had completely disregarded this man's ability to repay the money. He had simply filled out a one-page application form with very unspecific questions, net income and monthly outgoings. I'm not suggesting that our client was fantastic - it was his fault - but surely there's a duty of care on behalf of the company, to make sure that the person can afford the credit repayments. I argued that their poor underwriting standards were contributory negligence."

People frequently try and muddle through their debt problems, only seeking help when the crisis is overwhelming. By then, the worry will have taken a toll on their health.

"Unfortunately, a lot of the people we see are severely depressed," said Jane Floweth, manager of the Bradford CAB in Canal Road. "We wish they would come and see us earlier."

A NEW book is available which would help advice workers counselling people with debt problems. The Child Poverty Action Group's Debt Advice Handbook is available direct from CPAG at £12.95 a copy plus £2.95 p&p from CPAG, 94 White Lion Street, London N1.

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