It is obvious that as a populace we have taken on too much debt, too rapidly. Unsecured debt became effortless to qualify for and lenders where frequently willing to lend without doing thorough financial checks. As we know this has led the economy to a appalling financial state.

If you start to struggle with debts are you to blame?

Many people believe that if you have financial problems it is because you have not managed your finances correctly, but a recent survey illustrates this is seldom the case.

In a survey by one of the largest debt solutions providers in the UK - EuroDebt - the top cause of debt problems was reduction of earnings. Over one third of debt difficulties were caused by this reduction of earnings, even if you have a comfortable debt a significant reduction of earnings can trigger acute financial burden on a family. With many families having little savings a reduction of income for three months or more would put nine tenths of families in serious debt problems.

Another fifth of debt problems were caused by a change in situation such as the birth of a child, divorce or illness. Divorce alone was the cause of ten percent debt difficulties, as families part there is a need for extra housing, transport and sometimes child care. These additional expenses can make it impossible to meet debt obligations.

Sudden sickness is another key contributor to financial hardship. Many people do not have the necessary insurance to cover them if they are sick, the temporary reduction of earnings can put consumers in to a financial position that they struggle to recover from.

Only thirty percent of instances of debt hardship are actually from debt negligence or debt spiral.

As we have already talked about it did become too easy for members of the public to qualify for debts they could never afford to pay. In this instance both the financial institution and the borrower have to take some culpability for the financial mess.

When you analyze the causes of these debts it’s not unexpected that all social classes have debt difficulties including professions such as Doctors, Police and Teachers. After all no one job is safe from divorce, illness or job loss.

So what action should you take if you find yourself having difficulty with your finances?

Importantly know you are not by yourself and many thousands of decent people have the same issues. What is important is that you understand you are having problems and you take action fast.

Depending on the cause of your problem you may need to look at some of the following steps.

Try to consolidate some of your credit cards in to a smaller payment and a lower interest rate.

Talk to your lender, tell them about your situation and ask what they can do to help.

Get some expert debt advice from a debt management company who can often reduce your debt payments to a level you can manage.

Debt difficulties can be a result of lots of differing circumstances and it can happen to anyone. If you struggle with your finances taking action quickly will stop the issue from growing out of control.

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