OXFORDSHIRE consumer advisers are warning that twice as many people as last year are falling into debt this Christmas.

And some are resorting to “payday” lenders – who sometimes charge more than a thousand per cent interest per year for their loans.

Theresa Elliott, debt adviser at the Barton Advice Centre, part of Oxfordshire Community Work Agency, told the Oxford Mail: “There are easily twice as many people coming to us with debt problems as last year.

“And this year we are seeing many more people from all over the county who have got into debt trouble – with many more coming from middle class backgrounds.”

She added: “Payday loan providers are a big problem for small earners. Their offers can be very tempting now that getting loans from banks is hard.

“But all too often short term solutions lead to long term problems.”

She warned consumers to take great care when borrowing this year, with many working people’s payday falling just after Christmas.

One area of potential difficulty with payday loans is so-called “rollovers” that enable borrowers not to pay back a loan when their payday comes around. But these “rollovers” can land borrowers with large interest rates.

Sian Fletcher, spokesman for the Money Shop, a payday loan company that has a branch at 171 Cowley Road, Oxford, said: “Our payday loans are designed to tide you over to the next payday, ie. 30 days. At the moment if you were a first time borrower online you could obtain £100 for 30 days and it would cost you £10.

“It is important to distinguish us from illegal lenders. We are responsible and regulated by the Office of Fair Trading."