Play your cards right

Shoppers, on average, are going to slap £470 on their credit cards over Christmas, or around £10.8bn in total, as fears grow that Britain's debt-fuelled consumer boom is reaching breaking point.

Spending on cards could be as much as one-third higher this year than last, according to credit card company Capital One.

The average household now owes £6,800 on cards, personal loans and store cards, while the total debt, including mortgages, is fast approaching one trillion pounds (£1,000bn). One in four people do not even know how much they owe.

In a bid to tackle the problem, the Office of Fair Trading this week unveiled an advertising campaign advising people how to cope when they fall behind with payments. It is to be spearheaded by Sue Cleaver, who plays loan shark victim Eileen Grimshaw in ITV's Coronation Street. OFT director Penny Boys says: "Coping with debt early on is the key to avoiding serious problems. Your should act as soon as the bills mount up or payments are missed. Don't bury your head in the sand and hope it will go away. It won't."

The OFT advises:

· seek impartial advice. Avoid the "loan consolidation" companies advertising on day-time television and instead go to agencies such as the Citizen's Advice Bureaux; Advice UK (020 7407 6611); National Debtline (0808 808 4000) or the Consumer Credit Counselling Service (0800 138 1111).

· contact companies to whom you owe money - they may be able to help;

· keep copies of all letters about your debts;

· prioritise - like mortgage or rent, and those which cost you most.

The OFT also revealed it is closely watching the daytime television pedlars of high interest rate debt. "It is our intention is to ensure they stick to the rules," it says.

The OFT is also anticipating a "supercomplaint" against doorstep lenders from the National Consumer Council, which will prompt a formal investigation under the new Enterprise Act.