It is usually at this moment in time when we are in need that the Banks make a killing trying to offer us even more money, offering us deals left right and centre to help us smooth our way out of debt into even more debt (if the truth and the small print be known).

Our client had fallen into arrears with his mortgage instalments and had been trying to get some sense out of the client's services dept of his Mortgage Company when he reviewed his own monthly bank statement. His Mortgage payment had defaulted this month and he had spoken to his Mortgage Company and he had explained that he wished to clear his arrears by way of a cheque once the transfer of some other funds had been completed.

This was accepted and everything seemed fine until a few days later he received several letters reminding that the Finance House would be attempting to collect his mortgage payment ten days later. Could he also make sure that there were sufficient funds in his account to facilitate this (despite having been told several days previous to this of his proposed methods for clearing his arrears and having accepted these proposals) as if there weren't The Mortgage Company would make him pay an additional late payment fee and also charges from his own bank as well.

So it appeared that when the dust had settled when this attempt at collection had failed my client was now left with twice as much in the way of bank charges being debited to his account but also a double set of charges being levied by his Mortgage Company. It is the sign of a slightly twisted society and business that makes the majority of its profits from those who are least able to afford them. The client involved was broke at the outset and through no fault of his own he has even less available to his disposal now!

The moral of the story? Make sure that you read properly the agreement before signature (usually hidden deep in pages eleven or thirteen of most documents in the smallest font size that the printers can get away with) and if you feel that you will have problems meeting any of your payments you are obligated to meet, get in touch with your creditors as soon as possible and make sure that you have ?crystal clear? agreements (preferably confirmed in writing) as to how you propose to deal with any rescheduling of any of your debts.

Do yourself a favour and try and prevent excessive borrowing getting worse.