Avoiding the credit card debt trap

"Third, think about switching to a credit card that has a low rate of interest, or no interest. Compare the costs and benefits among the main credit-card providers. Doing some homework helps as you can end up paying less interest while you are paying off what you owe," Kapur continued.

"Fourth, make sure you pay off your dues before the end of the interest free or low interest period. Making repayments after the due date can attract huge interests and penalties," he said.

"Fifth, if you are holding more than one credit card, consider using balance transfer facility. Using this facility, you can clear off the dues on one credit card by transferring the amount to another and pay lower interest rates on the dues," he added.

"Finally, consider taking out a personal loan with a low APR (annual percentage rate) to pay off your card. Then cancel your card, or don't use it until you have paid off your loan. Shop around and compare loans of the same amount and term using the APR," Kapur said. "Find a loan with the lowest APR and take it out for the shortest possible term. The personal loan cost comparison can help you compare the loans from the main providers. A longer term will mean lower monthly repayments, but the longer you take to pay it back, the more interest you will pay."

"Once you have succeeded in paying off what you owe, make a deal with yourself to only use your card in certain circumstances and to always pay off your bill immediately, or in the shortest possible time," he added.

According to Kapur, these days, banks are also playing an active role in advising credit card users so that they do not default on their repayments.