A lot has been written lately about the state of the mortgage lending business. Although I totally agree that lenders have both a fiduciary and moral duty to the borrowers they work with, and in many cases they have failed, I also feel–strongly–that borrowers must take responsibility for some of their actions. We all know that if we borrow money with an adjustable rate, we are taking on some risk. Borrowing money in the subprime market or taking on a loan with negative amortization is even more risky.

Yet borrowers want to take the money now and blame the lender later. They do not fully understand the terms of the loan, or they ignore the risk, or they simply borrow an amount that will put them on the verge of bankruptcy hoping that “someday” things will straighten out. Occasionally things do, but more often than not this type of borrower ends up overspending on the credit cards or running up other sorts of debt that ultimately lead to his demise.

Then he blames the lender. The lender, after all, should have been able to see into the future. Lenders should know that borrowers will not properly manage their spending — right?

Unfortunately, this is a lesson that the lenders are indeed learning, although too late for the more than one million foreclosures that have already taken place. As a borrower, you can only do one thing: increase your financial literacy.

You do this by taking 3 steps:

Manage spending

Most people spend about 10 percent more money than they make. To avoid this, create a budget and commit to it. Track your expenses, compare the end result each month, and make a new plan for the next month.

Manage savings

Everyone needs savings. Begin by saving just a small amount each month, and gradually increase it. Only a few dollars a week can make a big difference over a year’s time! Consider having your money taken out of the paycheck and put into savings via automatic withdrawal, so that you never have a chance to spend it.

Manage credit cards

If you cannot pay cash–don’t buy. Avoid credit accounts with high fees, like merchant accounts. Work at paying down the balance on your higher interest cards first, then as each one is paid off, apply that money toward the next card. You’ll have them paid down in no time.

Above all, do not depend on your lender for information on how to take these steps, or for counseling. As a test, phone several lenders and ask them all the same questions. You will quickly learn that you get different answers from each one. If you need financial counseling, consider using one of the counselors that the U.S. Bankruptcy Court has approved. You can find counselors listed by state at http://www.uscourts.gov/bankruptcycourts/approvedagencies.html.