A debt advice company has said that the biggest cause of serious debt in the UK is debts from credit card payments.

According to the Debt Counsellors, credit card debt is a factor in 91 per cent of all cases of serious credit debt and store credit cards are a factor in 41 per cent of all cases.

In response, the Association of British Credit Unions (ABCUL) has said that loans are a better alternative to credit cards for those seeking credit.

"With credit cards a lot of people just pay back the minimum and it is a decade before they've repaid the loan," said Abbie Shelton, a spokesperson for ABCUL.

"Clear illustrations would help people manage their money better. Credit cards can be quite a dangerous tool in the wrong hands."

For many people a debt consolidation loan can be a good way to reconcile their existing card debts and manage their finances.