Cash point

The Citizens Advice Bureau helped 30,000 people struggling with doorstep lending debts in the last year.

Nearly half had a long-term health condition or disability, two-thirds were unemployed and half were in council tax arrears. A similar number were behind with their water bill.

Home credit loans are typically from £100 to £1,000, with interest as high almost 1,600%.

CAB wants the Financial Conduct Authority to clamp down on doorstep lenders and give people taking out loans the same protections as payday loan customers – ensuring no-one pays back more than double the amount they borrow. The charity says this could save up to £123million in interest repayments on 540,000 loans each year.

There is no limit on what people repay on doorstep loans and there are no affordability checks to ensure they don’t borrow more than they can afford.

People on lower incomes should try to find a credit union to borrow from. They offer loans at affordable rates and encourage good money management by insisting borrowers save and build up a financial cushion.

There are around 305 credit unions in communities in England, Scotland and Wales. Find one at Association of British Credit Unions, findyourcreditunion.co.uk. Or call 0161 832 3694.