There is good money to be made in lending people cash. No matter how good the offer of a loan or credit is, someone is making a large profit out of it.

There was a time when you were only given credit if you were calculated to be able to pay it off. Students being given credit cards or borrowing money was unheard of right up until the late 1980s.

But the whole profile of people's finances changed in the mid 1990s, at a time of a housing boom and greater economic prosperity.

According to financial experts, the change came when US financial providers invaded the UK money markets, bringing with them new aggressive marketing techniques, including low introductory interest rates and high credit limits.

This left domestic credit card providers standing, so, faced with a vanishing market share, they soon followed suit and, as a result, the country is now at debt boiling point with buy-now-pay-later deals, promises of low interest credit cards, store cards, catalogues and door-to-door money lenders offering cash and vouchers.

Then, of course, there is student debt. Young people are now leaving university and college more than £10,000 in the red before they have even entered the job market.

Twenty years ago they would have had to have been employed for at least five years before being able to secure a loan of that amount.

A NatWest money matters survey suggested many graduates have monthly debt repayments of £200 a month, with the average starting salary for graduates standing at £13,422.

With rent and bills to pay, many graduates end up borrowing more money to pay their daily living costs and spiralling debts.

And there are plenty of people and organisations offering more credit.

There are now 1,600 credit cards on the market, compared to one card 30 years ago.

The average householder owes £5,000 in addition to their mortgage and one in four people are reliant on credit cards and loans to pay everyday bills and food costs.

The change in the availability of credit has led to thousands of people finding themselves in debt.

When they reach crisis point, people often turn to organisations such as the St Luke's Advice Service on the Old Shoreham Road in Brighton.

Sarah Relf, a development worker with the charitable organisation, said people in debt came from all walks of life and being in the debt trap was no longer restricted to people on low incomes.

She said: "It spirals out of control. Once people get to the point where they are taking out loans to pay off other debts or the interest is more than the monthly minimum payment, they need to do something.

"A lot of people don't know what they are getting themselves into and then they bury their heads in the sand."

Some people who arrive at the centre or the organisation's weekly clinics in Moulsecoomb and Whitehawk in Brighton, are often in despair.

Marie, who is a caseworker with St Luke's, said: "People can find themselves in debt, perhaps following the break-up of a relationship or marriage, or it can be losing a job and lots of other reasons."

Marie said debts could have a serious effect on people's health. She said: "If left, it can cause someone to be suicidal. It might be too much for one person to deal with."

When a person visits the clinics, staff work out what an individual's debts are and which organisations are priority for payment, such as a landlord's rent. They will also speak to creditors to work out a deal on repayment terms.

The debt problem hanging over Britain has sparked the Government to issue a White Paper on consumer credit. Patricia Hewitt recently announced the publication of the paper called, "Fair, Clear and Competitive - The Consumer Credit Market in the 21st Century".

The White Paper sets out the policies that the Government intends to pursue, including measures to strengthen the rules governing credit licenses and putting debt management companies and rogue money-lenders under closer scrutiny It will give the Office of Fair Trading the power to fine moneylenders and conduct surprise raids on debt companies.

Moneylenders will have to provide standard information when advertising financial products so consumers can compare like-for-like and find the best deal and small print will have to be enlarged.

But there are alternatives to high street banks which are becoming more popular with investors or borrowers because of their ethical stance to financial matters.

Martin Groombridge is manager of the Brighton East Area Credit Union Ltd, a co-operative, which offers loans and savings schemes as an alternative to the high street banks.

Often credit union rates are lower and clients are dealt with as individuals. Its objective is to help all members take control of their money by helping them out of financial problems, encouraging saving and reducing debt.

Mr Groombridge said: "At this time of the year we're all talking about debt. Most of us go bonkers at Christmas and the real issue at the credit union is not just providing people with cheap loans but we encourage them to save."

The union has grown to 587 members in just two years since it began trading.

But as part of the agreement of taking on a loan, members sign up to save a small amount each week.

He said once people joined the union and took out loans and advice, they rarely defaulted on repayments.