The factors that lead to bankruptcy seem to be compounding one another in recent times as those people who are at risk of needing to declare bankruptcy are pushed further and further into the position where they have no other choices.
The society that we live in has become so accustomed to debt that people have almost begun to forget the seriousness of debt and the consequences it can have if not dealt with quickly.
The fact that debt has become such a common facet of life these days is a terrible indictment of the society we live in and the lifestyles we lead.
Even those people who are cautious planners and are very aware of their financial position are often pushed into debt through circumstances far beyond their control.
The advent of the recent interest rates increases are only the icing on the cake since the financial circumstances of many people have spiralled far out of their control for the last few years.
They are in a situation where there is little they can do that does not compound their debt problem.
Often, the measures people take to reduce their debt problems can increase them instead which leaves them in a worse state than they were in before.
Just day to day living can push them past the limits to which they have stretched themselves financially.
Even having multiple sources of income can be insufficient at times as the bills and debts escalate.
The larger the financial problems that people have to live with, the more problems seem to develop and not only do people suffer financially, they also suffer mentally and psychologically.
The damage that debts and bankruptcy do to a person are often far underestimated, particularly by those people who are not in the same unfortunate position.
Often people in this position will turn to banks and lenders in a desperate attempt to borrow the money they need to repay their current creditors.
This can often end up working against them as either their loan request is denied or they end up with repayments that are far higher than they can afford.
This can often turn out to be what pushes them to the point of declaring bankruptcy and just walking away from everything they have worked to build up.
This is something that many non-mainstream lenders try to prevent.
To do this there are new products being released that are intended to help people who are in a bad financial position.
One of these is the bankruptcy mortgage that can provide a greater deal of financial assistance to people experiencing severe financial problems.