THOUSANDS of families in the Southend area are at risk of losing their homes due to the credit crunch, new figures show.

Statistics compiled from credit agencies show 8,695 households in the Rochford and Southend East constituency are a high risk and could be struggling with debt.

The figures have been backed by the Southend Citizens Advice Bureau, which says debt tops the list of enquiries they receive.

CAB manager Trish Carpenter said most people seeking help from them had changed from needing credit card debt advice to being worried about losing their homes.

She said: "More and more people are expressing concerns that it's their house at risk. They are worried about how they can manage their finances as a whole.

"Many people are finding their mortgage deals are not what they thought they'd be and are finding it difficult to get loans."

Mrs Carpenter said particular problems were fixed-rate mortgages ending and deals on interest rates not being as competitive as when people first signed up.

The knock-on effect is affording repayments on top of rising council tax bills, energy bills and increased fuel costs.

Mrs Carpenter said: "People are worried about their financial wellbeing disappearing, while creditors are nervous about the wider financial picture and are far more quickly thinking about realising a loan by repossessing a house or threatening to do so.

"It is a gloomy picture. We are predicting the next 12 months will be incredibly difficult for people. We advise people to act responsibly with their finances."

The latest official Government figures show 18,000 homes across the South East were hit with repossession orders last year, with 609 orders issued at Southend County Court.

One estate agent in Southend has reported house valuations for repossessions taking place once a month, up from one a year.

James Duddridge, MP for Rochford and Southend East, said first-time buyers were also suffering from the credit crunch as mortgage lenders were demanding larger deposits.

He said: "Thousands of families across my constituency are now exposed to the possibility of losing their homes.

"With more households facing soaring bills as their fixed rates come to an end, mortgage lenders should do more to help home owners."