More than 15,000 people in Oxford are battling debt problems totalling at least £7m, according to a new report.

Oxford Citizens Advice Bureau's latest annual report has revealed that out of 15,000 clients who contacted advisers in the year 2005/6, 44 per cent of them were experiencing serious debt problems.

Mark Achurch, debt specialist at the CAB office in St Aldate's, said: "In 2006, there are record levels of personal debt in Britain and we are told that we are addicted to credit.

"The truth of personal debt is usually more complex. Debt problems usually arise because of changes in employment status, interest rates, and due to bereavement, illness, addiction and relationship breakdowns.

"Of course, some clients do over-extend themselves and borrow amounts that they cannot afford to repay.

"Irresponsible lending, high interest and charges also play a part. It is interesting and somewhat shocking to reflect on how much personal debt is due to the cost of the credit rather than the amount originally borrowed.

"Clients usually approach us when the problem is critical and they can be distressed and embarrassed."

David Scott, manager of the Citizens Advice Bureau, said 85 staff, including volunteers from Springhill Open Prison in Grendon Underwood, near Bicester, were working hard to address Oxford's debt problems.

He added: "Since the end of the financial year in April, we have seen an increasing number of clients regarding personal debts, so the total debt is now closer to the £11m mark.

"One of the best ways of tackling debt is, ideally, to stop borrowing once you are in debt, because then it snowballs.

"Instead of borrowing more, people should contact us or other advice agencies."

In 1997/98, there were 9,700 visitors to the CAB in Oxford, but that figure has more than doubled in the past nine years, and in 2005/6 there were 23,308.

Mr Scott appealed to the bureau's core funders, including Oxford City Council, to increase its annual grants. At the moment, the payments are not protected against inflation.

Mr Scott added: "Last year, we helped clients gain £1.3m in benefits, debt relief, mortgage and rent payments.

"In this way, we support the local economy and make a positive difference to people's lives.

"We trust that our service to Oxford citizens will continue to be recognised and valued.

"We are now fully computerised and all our staff have access to work stations."

Last December, Princess Anne visited the CAB office in St Aldate's and met prisoners working there as advisers.

Since 2002, 40 prisoners from Springhill Open Prison have worked as volunteer advisers.