I'm new to games like Torchlight 2 so I'm playing on casual difficulty to get used to it. Now I'm finding myself having to clear my inventory (loading my pet up with all unwanted equipment and sending him to town to sell it) 2 to 3 times every time I enter a dungeon. So at the moment it feels like I'm clearing my inventory excessively and wasting a lot of time this way.
Can I somehow increase my inventory size and/or is there some sort of a banker anywhere? Does increasing the difficulty level decrease the amount of drops you get?