Consumers can now add rising gas prices to rising interest rates as another factor driving many deeper into debt.

The spring spike in gas prices is adding to problems for people trying to pay adjustable rate mortgages where monthly payments have risen, particularly in the sub-prime category, Stalling said.

At the end of last year, 13 percent of all subprime mortgages were in delinquency, according to the Mortgage Bankers Association. Although conventional borrowers recently have curtailed their use of adjustable rate mortgages, many still hold them because of the surge in such loans during the last decade.

It all underscores the need for better informed decisions on the part of consumers, Stalling said. Home-ownership education classes and rebuilding credit have become a must for many of those looking to own their own home.

"Everyone wants the American Dream," Stalling said. "But not everyone is fit to be a homeowner."

Internet lending also has fueled the current subprime mortgage meltdown, Stalling said. Particularly when it comes to adjustable rate mortgages, Internet lending lacks many of the checks and balances traditionally imposed by local banks.