It is evident that as a populace we have taken on too much debt, too hurriedly. Unsecured debt became easy to qualify for and lenders where often prepared to lend without doing careful financial checks. As we know this has led the economy to a appalling financial condition.

If you start to struggle with loans and credit cards are you to blame?

Most people believe that if you have money problems it is because you have not conducted your finances correctly, but a new survey shows this is rarely the case.

In a survey by one of the biggest debt solutions suppliers in the UK - EuroDebt - the most common cause of debt difficulties was loss of income. Over one third of financial problems were caused by this loss of income, even if you have a manageable debt a significant loss of income can initiate acute financial pressure on a family. With many families having negligible savings a loss of income for several months or more would put ninety percent of families in serious financial difficulties.

Another twenty percent of financial difficulties were caused by a change in circumstances such as the birth of a child, divorce or illness. Divorce alone was the cause of one in ten debt problems, as families part there is a need for additional accommodation, transport and sometimes child care. These additional expenses can make it very difficult to meet financial obligations.

Sudden sickness is another chief contributor to financial hardship. Lots of people do not have the necessary insurance to cover them if they are sick, the temporary loss of income can put individuals in to a financial situation that they find difficult to recover from.

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

As we have already talked about it did become too simple for members of the public to rack up debts they could never have enough money to pay. In this instance both the financial company and the consumer have to take some culpability for the financial mess.

When you review the causes of these debts it’s not surprising that all social classes succumb to financial problems including professions such as Doctors, Police and Teachers. After all no one profession is protected 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 alone and thousands of decent people go through the same issues. What is important is that you understand you are in difficulty and you take action fast.

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

Try to consolidate some of your loans and credit cards in to a reduced payment and a reduced interest rate.

Talk to your creditor, describe your predicament and discuss what they can do to help.

Get some specialist financial advice from a debt management company who can often drastically reduce your debt payments to a level you can afford.

Debt problems can be a result of lots of different situations and it can happen to anyone. If you struggle with your finances taking action quickly will stop the problem from growing out of control.

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