LOAN sharks and doorstep lenders who charge up to 400 percent interest cost Kendray residents an estimated £2 million per year in repayments.

Kendray neighbourhood manager Ian Smith spoke of an urgent need to tackle the debt problem at an area forum meeting last night.

He also revealed that 40 percent of Kendray residents do not work, and that the estate is in the bottom two percent of the country for health and the bottom one percent for education and skills.

More than 5,000 people live there, and Ian said that 20 percent of them claim incapacity benefits. Speaking after the meeting, he added that 127 county court judgements were issued in Kendray in 2004, with a total value of more than £100,000, five times the Barnsley average.

He said: “My hunch is that it will be the tip of the iceberg, because if people are in difficulties they won’t go down the CCJ route, they just give them another loan.

"People in Kendray who have debt problems should go to Community House on Birk Avenue or contact the Citizen's Advice Bureau."

He added that the debt figures were estimates based on a research project carried out in Sheffield. One young Kendray mother who did not wish to be named said she has loans with four different companies and spends about £75 a week on repayments.

She first got into debt after doctors told her she was pregnant with a baby girl, but after spending all her money on new clothes, the baby turned out to be a boy.

She said she now considers her loan company’s representative as a friend of the family because she is a regular visitor.

“To be honest I’m really lucky because I’ve got nice people. She knows my son really well and came to his Christening.

“When she’s coming every week and spending 20 minutes here you get to know each other.

“If I was in trouble one week and I couldn’t pay it, I know I can just ring her up and she’ll sort it out. “They do take advantage, but if you need the money at the time then you need them.”