Although this may seem like an obvious statement for most, credit card debt should be avoided as we are urged to not “fall back” on credit cards if we are unable to get your loan application accepted in the current economic climate.

The recommendation is to avoid credit card debt all together by living below our means. This is timely advice as the number of unemployed in the UK is expected to increase throughout 2009.

However it seems that more of us than ever are juggling more and more credit card debt, as research by Apacs found that credit card spending increased by 2% in 2008 and reached a total of £126.2 billion.

About avoiding credit card debt, David Kuo, head of personal finance at, said: “People need to be very aware that there is a problem with the economy at the moment, there is a problem with the system.”