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How did we get here?

One day it may dawn on you that you have a debt problem, until then you have not worried, money has been coming in fine, you have bought the 9ft Plasma TV for the lounge, built the extension on the house, a new car (or two), had that month long holiday in Florida.

Like most people paying for goods or home improvements in full is pretty tough so more and more people buy on credit, encouraged by "low interest" or "pay now pay next year" or "6 months interest free credit" problem is one way or another a £3,000 purchase needs to be repaid usually plus interest at some time.

Count up what you owe now today at a guess you say "a few thousand" but when you add it up it's £10,000, £20,000 or more. Gosh you say that will takes years to repay, and so it will.

The big problem is what you spend your money on is often a poor investment, it goes out of fashion, it deteriorates, it looses value or you just get bored with it.

Property on the other hand has been a super investment increasing in value more than the cost of borrowing so you "make a profit" by being in debt. When interest rates increase and property values slow down the return on your "investment" gets worse.

We are all prey to the big reasons why we get in debt

• We buy on impulse without considering the realities of being able to pay long term.

• We ignore bills and requests for payment (warning signs) especially red letters or serious reminders

• Things change that restrict our ability to pay - lost job, illness, higher interest rates etc

• We continue to spend and borrow more in the knowledge we are already having warning signs that we are already over committed.

• We ignore the issue and continue to say "I am coping" when you are in fact sinking deeper into debt and there is no way out unless things change.

We got into debt as such by being selfish, by wanting something NOW and being in a position via available credit to have it NOW.

The credit providers are only to happy to lend you the money when your credit status is good and your cash flow capable of making repayments but less friendly when the tide turns and you fall into arrears.

Borrowing more money to gain more time, to push a bigger problem forward and delaying the "evil day" is many people solutions to a debt problem.

Use the pages of Down with Debt web and get your problems and their solutions into perspective. It's not too late today it may be next week, or even tomorrow.