You know deep down that you have a big problem but you try not to think about it too hard and for too long, after all things will sort themselves out, I will get that promotion, I'll cut my spending down, we'll even sell the house and downsize.

The reality is that you just keep on going, you reduce your spending for a short while but sooner or later it creeps up to the same level as before. You juggle payments between cards, always spend right up to your balance, you draw cash out on your card to pay other cards and then household bills.

Then you leave a payment so late that you incur a charge, your request for a credit limit increase is declined or even worse you are declined another credit card.

Suddenly reality starts to set in.

You sit down and work out your expenditure and minimum debt payments.

You feel a little bit of panic set in because you finally realise that you cannot pay all your bills. You actually have more going out than coming in.

Next you add up all your debts and it is more than you had roughly added up in your head, a lot more.

Finally you realise that your total unsecured debts are more than your house equity and you are in fact insolvent…scary thought because you say to yourself, ‘I am actually insolvent’.

Now is the time to address the situation, you have finally woken up and realised that you have to take action. This is the time to seek advice.