The latest reports from the financial offices is that we’re getting ourselves into debt and money trouble by our spending habits and how we’re using loans to try and pretend we earn more than we actually do.

Coined as the “latte factor” by an American researcher, it’s common for both the British and Americans to get themselves into a while heap of trouble in this manner. Basically, a typical person struggling with a mountain of debt has continued to spend money on little spends here and there and used credit cards to do so. After they begin to receive some rude letters announcing that they need to pay back their credit, they take out a little loan and fill the gap and sort out the credit debt.

Later, even though they had all the intention of paying the loan back, they have continued to spend on their daily latte, chocolate bar, specially made sandwich or bottled water with money they don’t actually have. This of course leads to more rude letters and a new loan to cover the last, until people are in a massive amount of debt and trouble and they simply can’t pay it back.

Even though most people are only spending five or ten pounds a day, continued spending of money you don’t really have leads up to a big lump sum at the end of the month. The researchers are trying to promote that people spend five minutes making their own lunch or stick to the free coffee offered at work when they know money is tight. It’s the easy mistake to make, a few pound here and there is really difficult to notice until it’s too late and you’ve managed to go fifty pounds over your overdraft, not including the big fat bill for the pleasure of doing so.

If you are struggling and want to put a stop to it, the best way is to get one single loan, and commit to paying it back until you’re back in the black. You mustn’t continue as if it’s sorted out or you simply won’t get yourself straight again. Good luck!