Consumers in the UK are being urged to take out personal loans rather than to bolster their spending power by taking out a credit card, the Association of British Credit Unions (ABCUL) has suggested.

According to Abbie Shelton, a spokesperson for the group, buying on credit "can be a dangerous tool in the wrong hands".

Ms Shelton's views are supported by the figures revealed by a survey carried out by The Debt Counsellors which found that nine in ten cases of serious debt cases are contributed to by credit card debt.

Higher interest rate-carrying store cards have also been found to be problematic, having been cited in 41 per cent of all cases.

The ABCUL suggested that British consumers needed to be provided with more financial education.

"People won't necessarily listen to their provider – but they may listen to other voluntary organisations giving them information," Ms Shelton said.

Source:-moneynet.co.uk