The Perth branch of the Citizens Advice Bureau (CAB) received a record number of calls last month as more and more people struggle to pay household bills.
Many are also concerned imminent budget cuts will drastically reduce the benefits they are able to claim.
David Ogston, senior money adviser at Perth CAB, is worried Monday’s announcement that the UK inflation rate has risen to 4% will put greater strain on people’s purses.
Retail price index (RPI) inflation — which includes mortgage interest payments — rose to 5.1% from 4.8%, which may put pressure on the Bank of England to lift interest rates.
Mr Ogston urged anyone in need of free, impartial and confidential money advice to contact the branch.
He said, “There has been a steady increase in the number of people getting in touch with us since Christmas — the issue of money is gathering a lot of momentum.
“We have seen a big increase in the number of people struggling to pay rent, mortgages and fuel bills. Many residents are facing unemployment or reduced hours at a time when living costs are increasing and with the news mortgage rates could go up it may get worse.
“People are also fearful about benefit cuts. There has been a lot on the news about the government’s plans and many people don’t know if they are going to lose their entitlement.”
He added, “At the Citizens Advice Bureau we look objectively at an issue and offer impartial advice. We keep an open mind and outline all available help so that people can make an informed choice.
“CAB is the only accredited agency to give advice on debt in the area and our solutions are not dependent on payment — like some companies.”
Perth CAB is at 7 Atholl Place and can be contacted on 01738 450580. Drop-in services are available Monday to Friday from 10am until noon, while appointments are available from Monday to Friday from 1pm until 4pm.How are higher fuel prices and rising living costs affecting you? Click here to tell us in our special survey.