As well as the property market, individuals who over-rely on their credit cards are being hit hard too. The minimum APRs on even the low rate cards are at least 4% higher than two years ago.

As a result of the above facts and with the shocking rise in the price of gas most families will be hit hard and will eventually be forced into foreclosure and ultimately bankruptcy.

Country wide home loans given to low-income families for over-valued homes are part of what has accelerated the current credit and mortgage crisis. Now first time home owners and other borrowers are waking up to find they have ‘negative equity’ – the value of their property being worth less than their mortgage!

Finally lenders use ‘adjustable rate mortgages’ ARMs to entice borrowers into financial mess.