With credit freely available to the majority of people, in the form of loans, store cards, credit cards etc and lots of encouragement to "buy now, pay later", it is easy to get carried away and to underestimate the eventual cost.

Consequently, very many people can quickly find themselves in a difficult financial situation, facing a dauntingly large number of monthly demands for payment from different creditors and insufficient income to pay these in full.

How tempting then to consider one of the "consolidation loans" which are marketed so extensively in newspapers, magazines and on the television. It all looks so easy: little paperwork, a fast decision, and large lump sum to settle your existing debts and perhaps even spare cash for a holiday or a car!

York Trading Standards would urge those considering such a loan to exercise extreme caution. For some people, perhaps those in a temporary tight financial situation a particular type of loan might sometimes be the answer. However, for many whose outgoings simply exceed their income on a regular basis such a loan may prove to be a terrible mistake. This is because such loans are almost always "secured" on property, your home. If you subsequently find you can't meet the payments on this type of loan you will put your home at risk.

So what can you do if you can't pay your bills? Careful budgeting may be the answer, but often a total rethink will be necessary, together with a change in spending habits. The main thing is not to ignore the problem. Credit companies will often be understanding if they are kept informed. Seeking help from a debt counselling service may be the first step to establishing some order to a messy financial situation if all your creditors are demanding payment, whilst you can't decide which should have priority and you are continually "robbing Peter to pay Paul".

Remember simply borrowing more money to pay existing loans and then through necessity or otherwise continuing as before will lead to long-term financial misery and could eventually lead to the loss of your home. Sensible advice and helpful literature about any credit issue, together with information about alternative sources of advice about debt problems, is available from City of York Trading Standards.

The telephone number is 01904 551562 and they are located at 9 St Leonard's Place.

The fax number is 01904 551511 and the email address is trading.standards@york.gov.uk