Many families and businesses in North Staffordshire are facing a mountain of debt because it is far too easy to obtain credit.

Martin Williamson, licensed Insolvency Practitioner and a Director of DS Insolvency Services (DSIS), in Newcastle-under-Lyme, says that there is increasing evidence that levels of credit are approaching unsustainable levels.

DSIS is part of Dean Statham, North Staffordshire's largest independent firm of chartered accountants and business advisers.

Stoke on Trent Citizen's Advice Bureau recently confirmed that local families had clocked up £13.5 million of debt in just one year, some 400% more than CAB figures last year. With over 750 people seeking advice, this equated to average debt of £18,000 per person.

National statistics recently released by the DTI Insolvency Service show that personal bankruptcy has increased by over 23% in the first quarter of 2004, with individual voluntary arrangements increasing by a massive 41% in the same period - the equivalent of an additional 2,200 insolvent individuals in just three months.

"This reflects the ridiculous ease with which credit can still be obtained by individuals, either through credit and other cards, loans or by remortgaging house equity to spend", said Mr Williamson.

Six months ago, he pointed out, average personal debt (excluding mortgages) was estimated at more than 120% of net income. With yet another interest base rate rise, to 4.25%, individuals and families with a high debt burden would now be facing tremendous pressure on their finances.

"This problem will only get more difficult in the future and there is a danger that the DTI statistics are the tip of the iceberg because many individuals with severe debt problems seek help from unregulated debt advisors who may not provide full and proper advice on alternatives to debt management", he added.

Recent legislation changes in April 2004 relating to bankruptcy and individual voluntary arrangements may provide a more effective solution to financial pressures.

"Seeking initial free advice from an Insolvency Practitioner is likely to be more beneficial than responding to an advert that promises to make debts disappear".