As a community we have fallen into the trap of taking on large amounts of credit.

Whether this is to keep up with the Jones’ or to put on that lavish wedding.

However, with the economy the way it is, this inevitably lands us in financial difficulty where we are unable to repay our creditors.

As debt is such a taboo subject in the Asian community, we don’t tell anybody, and therefore preclude ourselves from receiving good debt advice. As on many occasions, the debt can simply be written off and the interest frozen.

It would seem that the Asian community is more open to the idea of taking out credit at an individual level compared to previous generations, however, discussing it openly is a big no-no as there is still a great deal of stigma and shame associated with personal debt.

Up until recently credit has always been thrust in our faces and our letter boxes full of ‘pre-approved’ loans and credit cards and we have willingly taken up these offers so we can pay for all the unnecessary junk that society tells us that we need.

Following the credit crunch, banks have significantly curbed their lending resulting in the traditional lines of credit drying up for the average consumer.

This became a problem for us as we are a nation of buy now, pay later consumers and we can no longer sustain our lifestyles.

We have been forced to make changes to our lifestyle choices and re-evaluate our finances.

However, sometimes making these changes is not enough to get us out of financial difficulty. On many occasions, this is down to redundancy or a reduction to the household income, especially in recent years.

Struggling with debt usually precedes stress, especially when the debt collection agencies are harassing you day and night and in many cases can lead to marital breakdowns further compounding the financial problem.

At this stage most people realise they cannot continue as they are and seek professional debt advice to address the underlying problem.

This is the start to the road to becoming debt free. However, unfortunately, many people turn to pay day loans at this stage or even worse, turn to gambling or drink. They generally do this out of despair and they cannot see a way out.

n Talhat Rashid is an Insolvency Specialist with Ethical Money Solutions