Better to seek advice early if you run into financial trouble, experts say

There is a deep stigma associated with money problems. They drive many people to hide their situations. People need to know at what point they really are in trouble so they can get help.

'Don't wait until the loan sharks are knocking on your door,' advises Pinky Yung, a social worker handling debt and financial services at Caritas Family Crisis Support Centre.

If left too long, people tend to borrow more money to cover the old debt, digging themselves into a deeper hole. 'On top of credit card interest rates of 30 per cent to 35 per cent, some financial companies give cards to customers at 40 per cent to 45 per cent, and desperate people borrow money at these rates to cover existing debt,' she says.

Inability to pay credit cards or loans are currently the most common problem, she says, but often the underlying issue is gambling, overspending or addiction - afflictions that are driven by Hong Kong's long working hours and high stress.

'They want to make themselves happy with gambling, or overspending, and next thing they know they're in debt,' Yung says.

Most people have three options: go to a social worker or counsellor; go to a lawyer to apply for bankruptcy; or ask the bank to restructure the debt. For restructuring, you must go early, Yung says, adding: 'By the time you have gone to a loan shark or illegal lender, it's very hard to resolve.'