Avoiding the credit card debt trap

"But with credit cards it is a lot worse because of the fact that interest is charged and can seriously mount up in a very short space of time," Srivastava said.

In such a case, Srivastava said, the credit card user often finds himself in a position where he is not able to cover the monthly payment or feel that the pressure is growing.

"The sooner you admit to the bank you have a problem and seek advice, the more chances you have of being able to resolve the situation in a satisfactory manner. If you bury your head in the sand hoping that it will just go away you will be in big trouble sooner of later as this will antagonize the bank further," she said.

Umesh Kapur, managing director of Tirupati Investment Corp. agrees. For people who have trouble managing their credit cards, Kapur has several solutions.

"First of all, stop using your card. It can be difficult to stop using it completely, especially if you rely on your card for day-to-day spending. However, you must reduce your spending if you want to want off less," said Kapur.

"Second, pay off as much as you can every month. The more you pay off, the less interest you will pay," he said. "Also, pay off more than the minimum payment every month. If you only make the minimum repayment, the amount you owe will reduce very little as interest on the dues will keep piling up."