When people acquire a substantial debt it rarely just comes out of the blue, rather it slowly builds up over time into a major sum of money. Sometimes the situation is complex one with numerous causes, but most regularly there is a single primary origin behind the trouble. Here is some of the most common causes of financial difficulty.

Mortgage Payments

When someone decides to buy a home, more often than not they have to borrow money from the bank to pay off the value via monthly installments over the course of an agreed time period. This is called a mortgage payment. A common occurrence is that after making the agreement the potential homeowner will at some point fins themselves unable to pay the agreed amount. This might be because they are out of work, or simply that they have not managed their finances wisely. Failure to pay your mortgage will lead to interest being added to the existing debt and can eventually lead to bankruptcy.

Car Payments and Insurance

Much like taking out a loan to buy a house, purchasing a car through the financial agreement of a monthly or weekly payment must be maintained. If this agreement cannot be held, interest will be included to your existing bill, leading to greater debt. This debt can also be made worse by failing to maintain payments of other duties like car insurance.

Credit Card Bills

Credit card debt is the number one cause of debt in the UK. It’s also one of the simplest causes too. Many credit card companies don’t investigate their customer’s financial background before granting them a credit card ignoring the possibility of customers having a history of reckless spending. When items are bought on a credit card and not paid back by the due date of billing, an additional fee will be introduced which can very quickly increase. The situation is often made worse when a bank debt is paid through credit cards set up with other banks. This not an uncommon occurrence when you consider the average Briton has three credit cards to their name.


Statistics show that 60% of adults in western society regularly indulge in some form of gambling, whether it is online or at a casino. Unless you have great restraint, or vast sums of money to cater to this habit, chances are you will soon spiral into debt, as more and more cases of bankruptcy through gambling is being reported. Within recent years gambling addiction has been recognized as a serious condition, not far removed from alcohol and drug addiction.


A divorce is already an unpleasant enough experience, but the additional money spent finalising it can be just as brutal. Legal fees and court settlements can leave you financially devastated. However, there are other things you can do to cut down these costs, such as arranging prenuptial agreements.

Author's Bio: 

UK Process Servers like Eclipse Legal are based throughout the nation and use professional fair approaches to tracing the whereabouts of clients who abscond from debts. With private investigators in Manchester to London, Eclipse Legal are the most reliable debt creditors in the UK.