As a nation, our debt levels are at record levels. Research from Citizens Advice shows that one in five people who have loans and credit are using that credit to cover everyday household bills. Worryingly, 23% of people with credit cards and loans have no idea how much they owe.

These tips could help you avoid the debt trap or take the first steps to get out of it.

Avoid the debt trap:
If you cannot truly trust yourself with plastic, then withdraw the amount of cash that you need instead. It is much harder to part with notes than hand over plastic, and you will also get a much better sense of how much you are spending.

Read the small print before you sign up for any credit. Check the annual percentage rate on loans and financing.

Don't be seduced by the marketing. Watch out for credit card and loan companies advertising interest rates as low as 2.9%, but which climb to 18% or more after a short time.

Pay card bills before the due payment date. Unless they are paid in full each month, lenders charge interest from the date a transaction hits the account, so the longer a debt remains on an account, the more interest you pay. The sooner a payment hits an account, the less you will pay in total. Paying the balance by direct debit will also help focus your mind.

If it is too late:
Stop spending straight away.

Don't ignore the bills, however much you dread them - credit card statements and bills do not go away and finance companies are willing to help, as long as you communicate with them.

Stay in touch with your creditors. If repayments seem unaffordable, many lenders will accept a part payment.

Break the vicious circle of borrowing from one place or person to pay back another - get debt advice.

Where to get help:
Consumer Credit Counselling: 0800 138 1111
National Debtline: 0808 808 4000
Citizens Advice Bureaux: see local phone books