A bankruptcy centre is to be set up in Birmingham to help the growing number of people becoming insolvent because of the spiralling cost of living.
The Consumer Credit Counselling Service said "super-inflationary" rises in basic living costs were making it tougher for people who were in debt, leaving many with bankruptcy as the only option.
It said more than 80,000 people it had on debt management plans were having to commit a higher proportion of their disposable income to basic living costs.
Malcolm Hurlston, chairman of CCCS, said: "Our clients represent the tip of the iceberg. Their budgets have been pared to the bone, if they are paying more for day-to-day living the impact of these rising costs will be manifold on the rest of the population."
A CCCS spokeswoman added: "We are expecting more people to have to opt for insolvency because of the pressure on them from increasing living costs. With this in mind we have set up a bankruptcy centre in Birmingham."