Top 10 mis-held beliefs that get us into debt trouble

Another pair of earrings or round of drinks can't possibly make any difference, can it? Don't kid yourself. Over time, the spending mounts up and when you do take stock, you realise you have nothing to your name but debts and some retail therapy. Nearly one in four people admits to regularly using loans or credit cards to pay their household bills and meet other day-to-day expenses, according to a new survey by accountants KPMG.

The increasing must-have culture means the pressure is on for us to have everything now. But it is leading people into mounting debts, with many owing around £10,000. Many of those who took part in the survey said they were even using credit cards for everyday items and weekly food bills. And 15% of people said their debts were spiralling out of control. Crucially, nearly half those questioned preferred to bury their heads in the sand over their debt, with 45% admitting that they failed to regularly read their bank and credit card statements. This is where the problems really start. But it is never too late to face up to your finances.

Everyone has one or two blips with money but if your bad habits have become more of a lifestyle then it is time to get a grip. Do any of these excuses sound familiar?

1. It's only one glass of wine, or maybe two, to be sociable at lunchtime
Yes but they are large glasses and at £4.90 each around four times a week, that's adding up to nearly £40 a week (or more than £2000 a year) not to mention a drink problem. And don't even get me started on evenings and weekends.

2. My bank loves me - it keeps increasing my overdraft so I must be doing OK with my money
Oh dear. How can I break this to you? Your bank sees you as a licence to make profits. It knows you will max the overdraft and wants to put temptation in your way. Learn to say no.

3. I can save money in shops by signing up for a store card just to get the on-the-spot discount
Can you really trust yourself not to use the store card again? No, thought not.

4. One more credit card won't make any difference - I already have three
It depends how much you owe on the others and why you want the next one. The chances are it will lead to nothing but more debt. If you are honest, you will admit that you - and your credit rating - could do without it.

5. There is no such thing as a credit blacklist - it's a myth created to scare big spenders
As you will soon find out, credit ratings are horribly real and if you get into debt and make late credit or loan repayments you will increasingly become undesirable to lenders.

6. But those shoes are in the sale so they are a bargain. I am actually saving £45
No you are spending £60. That you don't have.

7. You can't expect me to cancel my gym membership. It's an investment in my health.
It would be if you ever used it for anything other than the jacuzzi.

8. OK but if I do get into debt my bank will give me the best personal loan.
Only if you live in a dream world. The best deals are usually found away from the high street.

9. If I need some rainy day money, I can sell my computer
I can't think of anything less realistic.

10. Well then I can become bankrupt.
Apart from that.