John Davies, head of business law at the association (ACCA), said: "Unfortunately it is all too easy to hand over a credit card in payment and forget that a bill from the credit card company will shortly land on your doormat."

ACCA has five recommendations for avoiding getting overtaken by consumer credit in the current difficult economic climate. It advises people to:

Spending

Budget to ensure spending does not outstrip your earnings. If you have a regular income and know how much money you are likely to earn over the course of a month or a year, plan your spending so as to remain broadly within the limits of your anticipated income.

Get into the saving habit. Plan ahead for major items of annual expenditure to ensure that the extra spending does not leave you with huge financial problems. You should also try to set aside a small amount each month for a rainy day.

Although credit is still widely available, always take on debt with your eyes open. Always look at the terms of credit offered to you to check how much you will be committing yourself to paying on a monthly basis and over the whole term.

Remember that all debt will have to be repaid, often at significant levels of interest. In the case of major, long-term expenditure, ask yourself before committing to it whether you can realistically keep up that level of payment.

Be prepared to shop around for the best credit rates and remember that there is plenty of competition amongst lenders.

If you are unable to make your regular credit repayments, discuss your situation with your lender. Do not imagine that by ignoring the default your lender will do the same. Serious default will only increase the level of your debt.

ACCA says that for those who feel they are losing control of their debts, a range of voluntary help is available for consultation including the Citizens Advice Bureau and National Debt Helpline.

A range of formal insolvency procedures are also available for serious levels of debt of which bankruptcy is the 'worst case scenario'.

Mr Davies said: "Although it finishes after one year, you are likely to lose all your assets including your house to pay the creditors. It also has serious repercussions for your future credit rating."

He continued: "Middle ground can be reached through the Individual Voluntary Agreement (IVA), which is an effective debt repayment plan involving an agreement being brokered by a qualified insolvency practitioner and then submitted to creditors.

"The advantage of these formal arrangements is that once your creditors have agreed to accept a reduction in their claims against you, the agreement is binding."

People needing help with any aspect of financial planning or credit management can seek assistance from an ACCA accountant at www.accaglobal.com