Shocking figures have revealed the extent of Medway’s debt crisis – with more people taking out high interest loans just to put food on the table than for any other reason.

A major investigation carried out by the Medway Citizens’ Advice Bureau (CAB) in partnership with payday lender Wonga was shrouded with controversy and delays – but now the statistics and analysis are in.

More than 5,000 people in the Towns were surveyed on everything from the number of credit cards they own, to how much they understand when it comes to debt and financial literacy.

The main reason behind borrowing was expected to be rent or bills; instead a third of people admitted to using high interest short-term lenders to buy groceries.

Dan McDonald, the chief executive of Medway CAB, said: “It’s easier and nicer for people to think there isn’t a problem. But this week a woman came into the CAB who fed her child cornflakes all weekend because it was all she had left, and she went without anything. It’s heartbreaking but it’s why people are using foodbanks more and more.”

Three quarters of people surveyed who borrowed from high interest lenders said they felt their finances were completely out of control.

The second single reason for taking out a high interest loan was to pay back another debt.

Paul Clark, chairman of Medway CAB, said: “The figures are frightening. People are taking out loans they don’t understand, then borrowing more to offset them and are getting caught in a vicious debt spiral they can’t pay off.”

Based on their findings, Medway CAB is setting up a Social Impact Board to carry out CAB recommendations.

The aim is to create a strong partnership with the council and other public bodies, schools, private businesses and charities to evolve a more streamlined approach to helping people.

Mr McDonald added: “It’s going to be a long process. But I believe if there’s a will there’s a way and we really must do everything we can to lift people in Medway out of their financial crises.”

More than half of those questioned, with debts and without, said they felt their schooling had let them down when it came to learning about basic money management.

Education and early intervention is key in the survey’s recommendations. Representatives from the new board will be going into schools to find the best way forward; a student hub is to be set up at MidKent College to help 16 to 25-year-olds get more financially savvy and avoid the debt trap; and family events will be held to encourage discussions about money.

Mr McDonald said: “This isn’t an attack on schools, people are being let down across the system, and sometimes from their own families. We’re getting situations where people are coming in to see us as well as their parents and their grandparents. We need to break this cycle of debt.”

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