Shropshire in debt: 700 contact charity with debts totalling £11.4 million

A total of 372 people in the Shrewsbury postcode area and 355 in the Telford postcode area contacted the StepChange debt charity during the first six months of 2016.

The amount of debt handled by the charity showed an increase of almost 13 per cent in the Shropshire area compared to the same period the previous year.

People in the SY postcode area tended to have the bigger debt problems, averaging £16,496 for 2016 and £18,438 for 2015.

While the average debt levels for the Shrewsbury area showed a year-on-year improvement, the number of people needing help increased from 327 to 372.

This compares to 355 people in Telford seeking help with debts averaging £14,710 for 2016, and 359 seeking help with debts of £11,262 in 2015.

Low interest rates are encouraging more people to take out loans or buy on credit. But there are fears people are borrowing beyond their means and a rate rise could see a rush of repossessions.

Robert White of StepChange said the first half of 2016 had been its busiest on record, adding: "Consumer credit is now at its highest since the financial crisis.

"It is vital creditors are lending responsibly and before taking credit, people need to think carefully about whether they need it and whether they can afford it."

In the SY area the people the charity helped saw their spending exceed income by an average of £29 a year during the first half of 2016. In Telford, they managed a small surplus each month, averaging £11 over the same period.