Those affected by the credit crunch are being urged to resist the lure of loan sharks and their quick and easy money as this will cause more problems than it will solve.

Knowsley Council have issued this warning to its residents as the next stage of the recession strikes with all its force. Those who are struggling may find it difficult to obtain a loan the usual way, through a bank or building society.

Cllr Ken Keith, Knowsley Council’s Cabinet Member for Corporate and Customer Services, said: “It is understandable that many people may be feeling financial pressures at the moment as credit is not as widely available as it used to be, costs are rising and Christmas is approaching.”

“We know there are loan sharks operating in Knowsley. Although it may seem like an easy solution to your problems loan sharks prey on people when they are at their most vulnerable and will certainly create a whole new set of problems for you to deal with,” he added.