Diss Community Bank was set up to relieve the burden on people's finances, and try to ensure their future borrowing is at a controlled low interest.

One of Norfolk Credit Union's eight groups was relaunched in Diss on Wednesday, and offers a community based financial co-operative service.

Union president Alan Squirrell said: "A credit union is owned by its members and run by trained volunteers.

"It works just the same as a normal bank but at a much lower cost and all profits are reinvested into the bank and paid out in a dividend to its members at the end of the year."

The group has been boosted thanks to a £2,000 grant from the Cittaslow Diss Leader+ Community Chest fund.

Savings accounts can be opened for as little as £1, and the bank also offers low-rate loans. The bank is Financial Services Authority regulated and has to abide to the same regulations as high street banks.

Diss Cittaslow committee chairman Tony Palmer said: "The bank provides people with an easy way of saving and borrowing which is user friendly."

The Norfolk Credit Union also has community groups in Harleston and Wymondham, as well as one for Saffron Housing tenants.

Call the head office for details of when the groups are open and how to contact them, 01508 533842.

Joyce Cameron, money advice co-ordinator for Diss, Thetford and District Citizens Advice Bureau, said there were a number of people in the area with quite large mortgages who were struggling.

"We are not saying huge numbers but we are coming across people in the area who are losing their jobs.

"I think as we go into September, October and November, we are going to see people really struggling."

A survey of almost three-quarters of all Citizens Advice Bureaux in England and Wales reported that they dealt with 215,000 new debt problems in the first two months of 2008 alone.

Teresa Perchard, the national director of policy for CAB said: "These figures paint a worrying picture, suggesting a significant number of households are struggling to meet their most basic living costs.

"The combination of big increases in household bills, especially fuel, and rising housing costs, is putting additional pressure on people's finances when they are already stretched to the limit."

Further help in the credit crunch is on hand from Jonathan Gleeson from Badingham.

Having gone bankrupt several years ago, he has made a DVD about finance to help others avoid the same financial problems he faced.

He said: "It aims to teach young people about money and educate them on the potential pitfalls of it."

The video stars two pupils from Thomas Mills High School in Framlingham, as well as Mr Gleeson himself.