People in Sussex are sinking in debt as credit card spending and personal loans spiral out of control.

Personal bankruptcy in the county is at an all-time high as post-Christmas spending binges hit home.

National statistics put Sussex sixth highest on a list of bankruptcy hot spots with Brighton and Hove among the places worst-hit by debt.

In the third quarter of 2005 there were 359 personal bankruptcies in Sussex compared to 297 during the same period in 2004.

Of those, 260 were in Brighton compared to 200 in 2004. The figures are expected to soar in January as bills flood in.

Daniel Bettridge, spokesman for insolvency practitioners NancollasGreer, said: "Many people experience serious financial difficulties in January as Christmas credit card bills start to hit their doormats. We expect the region will experience a torrent of insolvencies this month as Sussex counts the cost of the traditional Christmas overspend.

"Its record rates of insolvency are evidence of what can happen when debt gets out of control."

A spokesman for the Citizens' Advice Bureau in Sussex said: "We are helping very high numbers of people. Debt has never been so high and January is the worst time because it is when credit card bills flood in. It is a crisis."

Peter Gannon, manager of Lewes Citizens' Advice Bureau which has a special money advice desk, said: "We have people in here with between £20,000 and £80,000 credit card debts.

"The first thing we do is to prioritise the debts and make sure rent and mortgage is paid otherwise people can lose their homes."

He thought East Sussex was particularly badly hit because of low wages and high living costs. Nationally, personal bankruptcies are up by 25 per cent from 2004. In Sussex the rise is 30 per cent. Mr Bettridge said: "This will continue in 2006 unless action is taken."