The bureau is left to pick up the pieces at the start of the new year when people who have financed their Christmas on credit, particularly low-income families, turn to money advisers for help. The organisation dealt with a caseload involving debts totalling £182,118 for the months of November and December last year. The number of new cases jumped from 10 to 33 in January and February this year and the total debt, including cases carried forward from the old year, was a staggering £458,958.

"It really is a frightening sum," said money adviser Heather Miller, who added that the amount demonstrated how easy it was for debt to escalate.

In addition, the bureau has so far this year dealt with 60 cases of individuals declaring themselves bankrupt and advisers fear that the total will rise appreciably in 2009.

Mrs Miller said that the bureau would not want to be accused of playing Scrooge at such a joyful time of the year but is endeavouring to head off some of the misery that debt inflicts.

She said: "Things are difficult enough financially for everyone at the moment, and the recession is beginning to bite.

"If you add Christmas spending to the equation, the result could make the debt issue much worse.

"Obviously, expenditure is much greater at this time of the year and, in many cases, our credit cards are the convenient option.

"But at the end of the day the money has to be paid back and this poses a real problem for low-income families who are probably already struggling at the moment."

In a bid to ease the pressure, Mrs Miller, a former banker, has suggested that one way of lessening the problem is for people to give smaller, or cheaper, presents rather than purchase gifts they really can't afford and which will overstretch their budgets.

She commented: "I am sure that relatives and friends will appreciate that the person has still made the effort, despite the present financial uncertainty."

Mrs Miller also highlighted the dangers of credit cards being used as a convenient method of payment and suggested that people use them sparingly.

She commented: "People can quickly find themselves in over their heads with debt which, I again stress, still has to be paid in the long run, with interest.

"However, credit card companies are tightening things up a bit and it is becoming more difficult to get a card, and as much credit, than previously."

Many bills come in during January and February and Mrs Miller is concerned that some people may "rob Peter to pay Paul", and try to solve their immediate Christmas spending in the short term by "borrowing" the money set aside for household bills.

She added: "Another aspect is the current uncertain climate, and the reckoning is that February is going to be the crunch time for jobs. The need for people to put the brakes on their spending has never been greater."

Mrs Miller appealed to anyone slipping into debt or already facing problems to contact staff in Wick on 01955 605989 or Thurso on 01847 894243, "sooner, rather than later".

She said: "The problem won't go away but there is always a solution. Getting in touch with us as quickly as possible is imperative."

Money advice is only one strand of Caithness CAB's community role.

The organisation has a new manager, Jill Smith, who made the following pledge in the organisation's annual report: "Going forward, we hope to provide an efficient and high-quality service. We aim to raise our profile and endeavour to reach those members of the community that need us most."

She instanced benefits claims, consumer and employment legislation, social security benefits, health, housing and legal matters among their services. In its annual report, the organisation says it has been another busy year, particularly for debt, benefits advice and employment issues.

From April 1 last year to March 31 this year, the two offices dealt with debt totalling £1,727,932 and Miss Smith commented: "In the current financial climate, we can only predict a rise in the number of clients we see."

Welfare rights were also to the fore with benefit gains for clients exceeding £200,000, but Miss Smith maintains that one in three pensioners do not know who to turn to for help and advice on how to claim.

A survey of the over-60s revealed that half of those eligible for additional benefits could receive enough financial support to cover all their heating costs and lift them out of poverty.

* Wick and Thurso offices have been getting an internal face-lift which has necessitated a variation in hours. This week the Thurso office has been closed and the opening hours extended at Wick to compensate. Future times can be ascertained by accessing the answerphone at either of the offices.

n.donaldson@nosn.co.uk

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