Advice workers in Bath are helping hundreds of people in the city to decide the best way to cope with their mounting debts.

So far this financial year, the city’s citizens advice bureau is battling with a 20 per cent rise in its caseload, with debt and benefits enquiries making up more than 80 per cent of its work.

Some 200 people have been given advice on whether they should take formal insolvency action, with 30 others helped to take advantage of a new option called a debt relief order - which can be cheaper than being declared bankrupt.

The CAB movement is celebrating its 70th anniversary, after being set up as an emergency service at the start of the Second World War, when its offices helped people trace missing relatives and arrange emergency accommodation after bombings.

The centre in George Street says it is also dealing with the effects of pay cuts imposed by local employers.

A spokeswoman said: “Employment and redundancy enquiries are increasing as local employers are hit hard by the recession and staff often have to take cuts in pay as an alternative to losing their jobs. We are also seeing an increase in the number of clients with mortgage arrears and negative equity.”

In the last financial year, which ended in March, the bureau saw 3,900 clients and dealt with more than 19,000 separate issues for them.

Of these, 38 per cent were benefit enquiries, 34 per cent about debt, seven per cent about employment issues and five per cent regarding housing.

Bath CAB chief executive Jan Westrope said she was proud of the way the organisation had adapted over the decades.

“From rationing to recession, the CAB has been there for people in times of crisis. People’s problems may have changed over the decades but the need for our service has not.”

The Bath bureau is part of a national network which tackles six million problems of all kinds every year, and has been used by almost half the population at some time in their lives.

Ms Westrope added: “We have a history to be proud of, and the reason we have survived so long is that we have constantly adapted to meet changing advice needs. We are now focussed firmly on the future with the aim of working towards making sure everyone is able to get the free, independent and expert advice they need when they need it, and in the way that best suits their needs.”

A debt relief order can be applied for if a person on a low income with few assets cannot afford to pay off debts of less than £15,000.

It usually lasts for a year, during which period no creditors are able to take action to get their money back.

To get advice, ring 0844 848 7919 or go to www.adviceguide.org.uk