The number of people in Brighton and Hove struggling with serious debt problems has doubled during the last two years.

The problem is spiralling despite high interest rates which have been introduced by lenders to curb the levels of borrowing.

Brighton and Hove's Citizens' Advice Bureau (CAB) said it was having difficulty coping with the number of debt inquiries.

By the end of the financial year, bureau clients with serious money problems were estimated to have risen from 2,500 in 2002 to 5,000.

Bureau director Adrian Davies said the need for specialists to help people wade through the financial quicksand had prompted the organisation to introduce four money advice projects.

However, potential clients have been turned away because of the mounting workload.

Mr Davies fears the rise in clients is "the tip of the iceberg" because debtors often only seek help as a last resort.

He said the majority of clients fell into debt because of divorce, the loss of their job, pay cuts or poverty and they did not know their legal rights.

He said debt problems in the city were fuelled by large numbers working in temporary employment and the high cost of living.

This has tempted unprecedented numbers of people to sign up to credit cards which offer low interest rates.

As debts spiral, many turn to loan sharks. The Argus reported in January that families were being charged up to 440 per cent interest on loans from moneylending companies touting for trade on Brighton and Hove's poorest estates.

An undercover BBC investigation traced at least six firms working door-to-door, offering money to help people.

Mr Davies said such operators could set extortionate annual percentage rates.

He said pressure from creditors could force people to take out more loans, compounding their problems.

Mr Davies said: "People need to know how creditors operate. Many will be surprised the law covering recovery of debt is in favour of our clients."

"We have two types of client - people on extremely low incomes and people who get into difficulties after significant changes in circumstances.

"We cannot meet the demand. We open the doors in the morning and sometimes have to turn people away because we are too busy.

"Generally, we help people to help themselves but occasionally the situation is so bad they need an adviser."

Debt inquiries rose by 46 per cent at Worthing CAB in the past six years and there are 142 cases whose combined debts amount to £2.6 million.

Branch manager David Chapman said: "Our concern is more are finding themselves sliding into debt.

"We suspect there are many people who are just about keeping their head above water who will find they are in serious trouble if interest rates continue to rise.

"Many are in a state of fear, panic and depression because of fears of homelessness, losing their jobs and letting their families down."

The Brighton East Area Credit Union, a voluntary organisation, has been helping people tackle their debts for the past two years.

Project manager Martin Groombridge said the highest annual interest rate he had seen a loan firm offer was 440 per cent.