The wage rate is not growing in line with rising debts so somewhere along line something has got to give. This may be in form of slightest interest rate rise which may be straw on proverbial camels back. One could associate it with a brick that is attached to an elastic band. You can gently pull and pull and nothing will happen, sooner or later brick will finally budge and most of use will be walking around with a black eye.

If you do find yourself in debt then don’t despair it’s not end of world. As long as you face up to fact that your financial position needs a makeover then you are on right path. The first thing to is gather all you credit statements and get an exact figure of what you owe in total and what those monthly payments add up to. You need to be clear in your mind what you earn and what you owe. This sounds simple but you can’t service your credit if your repayments are more than what you earn. If you find yourself in this position you need to consolidate all your loans into lowest rate you can find. This will bring down you monthly payments and hopefully be more manageable.

If you need help on doing this then contact National Debtline on (Freephone) 0808 808 4000 or Consumer Credit Counselling Service on (Freephone) 0800 138 1111. These numbers are for UK residents only.