I feel so sorry for some people whose lives are overtaken by debt, sometimes through no fault of their own.

When I say no fault of their own, I mean that sometimes with the best planning in the world, circumstances can conspire against us to turn our lives upside down.

Sadly, without proper advice, many people in debt overlook the obvious. Perhaps changing credit cards for those with a 0% balance transfer deal can help get over a rocky patch. Over a longer period, remortgaging a home could be the answer, as the money can then be used to pay off loans with higher interest rates.

How many small businesses have started up, only to fail somewhere down the line? The banking problems have meant that small businesses could no longer get loans, or in some cases sufficient overdrafts to help them to invest. And, because many small businesses are run by individuals or partnerships, they usually don’t become “limited companies” which means those individuals are personally responsible for any debts they face.

Whether it is due to a business going bust, or individuals who in their lives have taken on credit they can no longer afford, debt is getting worse for many of us. And it’s unlikely the recent budget will make things any better either.

Sometimes the only solution open is to go into bankruptcy. This is a last resort, but it does have its place in modern society. Debts can eventually be written off, and creditors may find themselves with at least some money from the dividing up of the debtor’s assets, though often that turns out to be very little.

Bankruptcy does help the debtor, as in time he is able to start off afresh. Hopefully he will never go through it again, and will probably want to stay away in future from making large purchases on credit. Above all, credit cards can cost a lot in interest if the balance isn’t paid off in full each month, and all of us should think seriously about how we use our credit cards so we don’t get into trouble with them.