According to a government think tank, the recession will force many Britons to seek the service of a loan shark in order to get out of debt.

It has been estimated that 35,000 extra consumers than normal, which makes up a total of 200,000 in the UK, may turn to this type of borrowing over the next year with British cities such as Stoke, Gateshead, Lincoln and Manchester the most obvious targets.

"There is evidence to suggest that the pernicious trend of illegal unsecured lending at extremely high rates of interest, or loan sharking, is making a comeback," said the report's author, Chris Leslie.

He added, "The diminished availability of regulated sub-prime credit is creating conditions where a sizable number of people have little option but to borrow from illegal sources."

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

Cllr Ken Keith, Knowsley Council’s Cabinet Member for Corporate and Customer Services, said: “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.”