Financial experts from a Northumberland debt advice charity are warning of the dangers of turning unscrupulous loan sharks to fund Christmas.

Debt Advice Within Northumberland (DAWN) Advice, based in Seaton Burn, said the pressure to buy expensive presents combined with the recession could see more people than ever resorting to unlicensed moneylenders - and the exorbitant repayment rates they demand.

Figures have shown that about 15,000 people a year borrow money from loan sharks, a large proportion of those in the run up to Christmas.

Often they charge extortionate rates of interest, making it impossible for borrowers to pay back the money - these rates can be as high as 200%, but annual percentage rates have been seen as high as 149,000%.

Liz Chadwick, chief executive of the social enterprise DAWN Advice, said when borrowers can no longer afford the repayments, lenders often turn to intimidation and violence.

She said: "December can often be a stressful time for families as we all feel under pressure to have the perfect Christmas day with great presents and food.

"It is important to remember however that it is really a time for family and that you don't need a lot of money to have a wonderful holiday.

"I would encourage people to work out what they can safely afford to spend this Christmas, and stick to this budget rather than looking to borrow money from unscrupulous sources.

"No gift is worth risking the threats of a loan shark for, and those that do often find they are trapped in an impossible cycle of increasing repayments they are unable to afford.

"At DAWN we offer support to people who are suffering from debt and our finance professionals can offer advice on the best way to prepare and budget for the festive season. At this time of year especially, we want to reassure people suffering financially that they are not alone."

DAWN Advice offers free, confidential and independent advice on issues relating to housing, debt, employment, benefits and family law. For more information, visit www.dawnadvice.org.uk.

It is a social enterprise and a member of the UK's largest network of free, advice-providing organisations, adviceUK. It is set to become a Member of the National Association of Citizen's Advice Bureau.