The number of people seeking debt advice has risen by a third as the credit crunch continues. In some cases it seems that cutting back on the luxury items doesn't seem to have made much of a difference to their finances.

With the prices of fuel, gas, electric and the general cost of living constantly going up, it's no surprise that people are finding it hard to keep their finances in order. There are a number of people that have desperately turned to their credit cards for financial relief but should never be used as a permanent fix. This is a very dangerous game to play and could easily land them in more debt if they don't keep a close eye on payments.

By using your credit cards or a loan in a bid to help your financial situation you will also be paying a premium for the luxury of borrowing. The most proactive way, would be to cut back where possible, or use savings that you may have tucked away for a rainy day. This is not always an option as not everyone has a savings safety net in place. Nowadays, only a minority of people have truly disposable cash, as a nation we tend to live to our means spending all and more of the money we earn.

Living this dangerous life of spending more than you earn can really affect your credit rating. You may even find that you will be turned down for a loan or credit cards or, even worse, fail to qualify for a mortgage. This devastating news can be hard to take and even harder to fix.