Living in debt is a fact of life for many householders. Being in debt isn’t a new phenomenon, but it’s increasingly common in today’s credit- obsessed society. Many people are living on what used to be called “the tick2", with consumers running up more and more credit, and many increasingly falling into the debt trap.

But what happens when consumers turn to loan companies to help them with their accumulated debt? Money lenders have always been a feature of our lives, dating back to the middle ages. But today’s money lending companies are one step ahead of the game. They’re well organised, and highly persuasive in marketing their services. They’re more subtle than the old- style, debt collectors. They just keep on coming around and around.

Shopacheck is a national company which offers loan to people who have no access to conventional credit. Shopacheck has a turnover of £150m. it charges the customers an annual percentage rate (APR) of 440% on its standard £100 loan. This compares to the average loan percentage rate of about 10% - 30% from most high street banks.

Carol Greenwood is Shopacheck’s top debt collectors,. Greenwood describes the collectors as “loan sharks”. She admits that the company targets people who cannot afford the loans they are taking on. “You’re going to pick on Mr. and Mrs. Vulnerable aren’t you? People who need something now and don’t care how much it is going to cost,” she said.When she visits her clients, Carol often spies through their keyholes to see if they are at home.

The effects of this type of lending can be seen on the Whitehawk Estate in Brighton, where there are at least half a dozen companies offering high interest credit.

A former Shopacheck collector says that he use to collect £2000 a week on Whitehawk Estate. Many of his customers were on benefits, but he was still allowed to lend them large sums of money. “To start with you could lend £100 in vouchers to a new client,” says the former Shopacheck collector. “If they paid that – ok then you could increase it over a period of time, just judging by the way they paid. “The people on income support are on guaranteed money so they are probably a safer bet than the people who are working,” he said.

Single mother Sandra Burtenshaw lives on Whitehawk estate. She borrowed money from a number of lenders and was soon excepted to pay back £130 a week from her benefits.

She says, ‘Nearly every night I wouldn’t sleep, wondering where I would get the money from, knowing that they would be knocking on my door. “It just used to go round and round my head. I used to think what can I sell in my house just to get some money for my kids.” “It’s so easy to get into debt…. In the end I went to the doctors and ended up on anti-depressants as I just couldn’t cope.”

All Shopacheck could say was; “Shopacheck is a responsible lender and cares about its customers and representative. Shopacheck is licensed under the Consumer Credit Act and conducts all its operations in accordance with its regulatory requirements.”

The National Consumer Council thinks that users of this credit may need more protecting when the cost gets out of hand. It is threatening door-to-door lenders with a complaint, which could result in a clampdown on their activities from the Office of Fair Trading.