DORCHESTER Citizens' Advice Bureau helped people deal with debts of more than £5 million last year.

And debt adviser Keith Greening warned the problem could get worse.

He said the high cost of renting property in the Dorchester area was one factor pushing people into debt.

The financial squeeze has hit all ages, with an increasing number of old people falling into arrears.

Mr Greening said: "There seem to be a lot of older people coming through our doors.

"They are often on a fixed pension income and are finding bills are rising. Utilities such as gas and electricity have risen sharply recently.

"Some older people are having to use credit cards and can't make the repayments.

"In the last year I know of one 82-year-old made bankrupt."

In the year ending in March, the bureau saw 11,332 people in Dorchester and its surrounding villages - up from 10,662 in the previous year.

Mr Greening said people were coming unstuck because they used credit cards for household bills but could not keep on top of repayments.

"You tend to think that people get a credit card and go on a spending spree but it isn't really like that.

"They get a card, go up to its limit and get another card. But they end up unable to clear their payments.

"We do also find that people will take out a loan against their property.

"I can't understand anyone paying for a holiday or a car like that but people do and some find they lose their home as a result."

He said the current economic climate with increased mortgage payments and a tightening of creditexpected in the wake of the US and Northern Rock crises would mean extra financial pressure for more people.

He added: "The big rush for debt advice comes after Christmas.

"Quite simply, people should not spend money that they haven't got.

"I know it's tempting but hold back and have a debt-free New Year."

He said people worst affected by debt were often those with the lowest incomes who had a history of credit problems, forcing them to use loan companies that charged more.

Mr Greening, who has been with the CAB for a year, said: "One person recently borrowed £2,000 and would have to pay nearly £6,000 back.

"They had a poor credit history, needed the money and didn't stop to think about the interest rate."

The CAB faced a range of problems with debt dominating the workload of the staff and volunteers.

Other problems included legal, employment and housing issues with many people struggling with a combination of factors.

Deputy manager Rosemary Lunt said: "The number of new debt cases has gone up enormously. But that might be reflected in the fact that we now have a dedicated debt adviser.

"We are certainly making more and more appointments for people needing help with their debts."

The bureau also helped clients claim more than £300,000 that they were entitled to during the year.

Volunteers helped share the workload by providing 17,000 hours of help.