credit cards have changed our lives and revolutionised the way we shop. Thanks to our flexible friends, long gone are the days when we had to scrimp and save to buy a new outfit, a flash foreign holiday or replace that old washing machine.

In today's consumer society we buy now and pay later, we don't have to deny ourselves anything. And the whole transaction is so painless - no handing over of hard earned cash, no need to pay it back quickly, no worries.

Until of course the statements come through the door, with more pages than a phone bill and with a balance that even Posh Spice would shriek at.

Increasingly, we are living beyond our means and racking up record amounts of debt.

Nearly one in four people now admit to using loans or credit cards to pay their household bills and other day-to-day expenses, according to a survey by accountancy firm KPMG.

Just over half of those questioned confessed to owing up to £10,000, whilst 16 per cent had totted up staggering debts of between £10,000 and £40,000.

Michael Gardner, manger of the Citizens Advice Bureau for Worcester, says people can dig their way out of debt if they face up to reality and start opening those dreaded bank letters.

"You have to face up to these debts," he says. "If you have problems, come to us. We want you to."

"We can begin to find a way out of the problem of debt and how to start paying then off."

Creditors will usually allow those with big debts to restructure their payments into more manageable instalments, after all they want to get their money back one way or another.

He also advises avoiding debt management companies, which charge a fee for restructuring your debts.

The Citizens Advice Bureaux, the Consumer Credit Counselling Service (CCCS) and National Debtline will all provide the same service as debt management companies but won't charge you a penny for the privilege.

Frances Walker, a spokesman from the CCCS, also warns people against being tempted into borrowing more money to pay off their debts.

Consolidation loans, which allow you to pay off your debts with one big loan, sound great but do come at a cost, the spokesman said.

She says: "They're usually secured against your home, so if you didn't keep up your repayments your house could be at risk."

Low interest rates make remortgaging your house another option, although again you could be forced to move out sooner than you expected if you fail to stump up your repayments each month.

"There's also the possibility that some people won't use the money to pay back their credit card loans," the spokesman says.

For people still saving money despite having large debts, the message from experts is clear - don't bother.

It makes sense to put your money into paying off your debts rather than your savings because the interest you'll earn on your savings will usually be a lot less than the rate your credit card charges.

Of course, none of us wants to get into debt in the first place, but with credit card companies and banks falling over themselves to lend you money it's easy to begin overspending.

The way to avoid plunging into the red is to keep a close eye on what you are spending each month.

It's a case of sitting down and adding up your income against your outgoings, trying to stick within your budget and - above all - trying to instil a bit of discipline into your spending.

The spokesman says if your debts, excluding mortgage repayments, are more than 20 per cent of your monthly income then you're over extending yourself.

But unless you're seriously in trouble, there's no need to kill off that credit card just yet, she explains.

"In an ideal world we would all save for what we bought but that's not realistic for most people. If you do use one, you should try and pay it back three or four months later and not just the minimum amount, or the interest will rocket up," she says.

Debt is a part of our culture now and isn't a problem as long as you can afford to pay it back.

But consumers do need to shop around for credit cards with the lowest interest rates.

More than a third of people quizzed in the KPMG survey said they had no idea, or only a very rough one, of how much interest they were paying on their cards.

The experts say consumers should be wary of store cards, which often tempt customers in with a discount on their first purchase before hammering them with steep interest rate charges.

Some charge up to 30 per cent APR, meaning you would have to pay back a whopping £600 in interest in just a year on a £2,000 debt. Others, meanwhile, charge 0 per cent for six months, giving you time to pay off debts without any charge.

So be smart, shop around for a card and spend only what you can afford to pay back. And remember if you do get into trouble, you're in good company.

For help with debt, you can call: CCCS Helpline 0800 138 1111; National Debtline 0808 808 4000 or ring your local Citizens Advice Bureaux.