AN East Lancashire businessman has said people must try and use the support services available to them if they are struggling with the rising cost of living.

Dave Fishwick, who owns Bank of Dave - better known as Burnley Savings and Investments - has told the Lancashire Telegraph he's recently been working with more and more people who are struggling with consumer debt.

Mr Fishwick said as a result of the rise in prices of gas, electricity and household items, teamed with people losing their jobs, having their hours cut, and wage rises not keeping pace with spiralling inflation, many are turning to short term loans to help them get by on a day-to-day basis, often resulting in dire consequences.

He said: "There around 14.5 million people in Britain who are struggling to make ends meet. 

"I have recently helped out a man from Padiham called Joe who was put on reduced hours because things were going from bad to worse with his employers.

"He took a £500 loan out from the bank in the form of an overdraft but has ended up paying £250 a month back in interest and charges, and he's had that for more than a year now.

Dave Fishwick BBC Morning Live Debt Advice.mp4 from David Fishwick on Vimeo.

"It's crazy, he's taken that loan to try and get himself out of debt but it's just spiralled.

"Joe was looking at borrowing £2,000 to consolidate his debts and pay them all back at once but when the bank sent him the terms and details of the interest it turned out he would end up paying back more than £6,500.

"It's unacceptable. It's happening all over, not just in Lancashire and the North West.

"What people need to do if they find themselves in these situations is understand some of their rights.

"People in debt like this are allowed what's called 'breathing space', and it gives them a two month period in which they can seek more help and try and get some plans in place to help them get back on the straight and narrow."

Mr Fishwick said anyone struggling can seek help from the Citizen's Advice Bureau who will advise on how to go about applying for 'breathing space', by contacting the debtors and supporting them until they can get back on their feet.

He said there's also a company called Step Change - a debt charity which can also provide help and support.

Mr Fishwick went on: "A few years ago, in 2014, myself and my business partner, David Henshaw did a series called 'The Loan Ranger' and we are now getting the same type of people asking for help as we were back then. 

"It's like things started to die down a little bit but all of a sudden there's been this influx of people needing help.

"For example, there's a lady we worked with who had to decide whether to feed her six-year-old daughter or herself. It's just terrible.

"My advice would be to start looking at where you're spending your money.

"Look at your Sky, Netflix, mobile phone subscriptions and see what you can cancel or find cheaper elsewhere.

"There are a lot of apps out there that can help you find cheaper deals so you can swap over.

"Take a look at your bank statements, ask yourself what you really need - do you really need that £60 Sky subscription? Could you getter a cheaper phone deal?

"It's all about changing and swapping and trying to find the cheapest deals out there by using the tools available. 

"It's ok for ministers to say 'oh, just work harder', but that's ridiculous though, as people are already doing their best but they're really struggling."

Mr Fishwick backed calls from Labour for a one-off 'windfall tax' on the billion of pounds of profit being made by energy firms over the past two years, while putting up people's bills by almost £700.

So far, the Conservative Government has resisted calls to implement a windfall tax.

"There should be a windfall tax on gas and electricity firms," Mr Fishwick said.

"They can't be paying multi-million pound bonuses to their CEOs and expecting people to swallow it up."

Mr Fishwick said big companies have to either start bringing prices down or having huge taxes placed on their profits, and then distribute this money to the public.

He added: "Some people are taking out loans to pay off debts, and this just leaves them in a spiral of debt.

"Unless someone comes along to help them they are going to be in that spiral forever.

"These ministers and lawyers can say what they want but they earn hundreds of thousands of pounds and have no idea what it's like to really struggle - they don't know what it's like for people living in Burnley or other parts of Lancashire. 

"So my advice would be, go to the Citizen's Advice Bureau, look at these comparison apps, check your monthly statements and see what you can swap out, and seek advice, because it is there."

To ask Mr Fishwick a question or get advice from the man himself, email Bankondave@Thisismoney.co.uk