The government is handing out £45m to employ 500 independent debt advisers over the next two years.
CAB's will get most of the new money for debt advisors
The money will be used to help thousands of people gain personal advice in England and Wales on how to cope with their debts.
The money, from the government's Financial Inclusion Fund, is being channelled to a number of organisations such as the Citizens Advice Bureaux.
The government said it was part of its strategy to combat over-indebtedness.
Trade & Industry Secretary Alan Johnson said: "This £45 million boost to provide more free face-to-face debt advice is vital to help ensure more people with severe debts have access to the right advice when they need it.
"For the vast majority of people, their level of debt is manageable. But for some, debts become overwhelming.
"We hear far too many stories about some of the most vulnerable people falling prey to loan sharks who exploit their fears."
Citizens Advice Bureaux
The bulk of the money, £33m has been allocated to the Citizens Advice Bureaux, which will be taking on 370 more full-time staff.
The CAB estimates this will mean that about 100,000 more people with debt worries receive face-to-face advice.
Its chief executive David Harker said: "Citizens' Advice Bureaux have seen a huge increase in the number of people seeking debt advice in recent years, and last year we dealt with 1.25 million debt problems.
"We are absolutely thrilled by this news, which represents a real vote of confidence in the debt advice already done by the CAB network."