It has emerged that the factor behind ninety one per cent of serious debts in UK is credit card. Ignorance of how credit card agreement works is the main reason for it. Personal loans, secured and unsecured, are recommended as alternative for credit cards.

London (shakespearefinance) 01 Nov 2006: It has been announced by the Debt Counsellors that factor behind ninety one per cent of serious debts in UK is credit card. In the wake of this announcement Credit Action, National Money Charity has emphasised on better education for consumers on personal finance.

Associate director of Credit Action, Chris Tapp said, "Consumers are still lacking understanding of how a credit card agreement works." He also said that he thought education was a massive need when it came to that. A lot of people still didn't understand what they were doing when they were spending on their credit card, he added.

Mr Tapp was also very critical of the advertising methods employed by some credit lenders. He stated that consumers received as many as twenty seven pieces of junk mail each offering solutions to debt problems.

Many experts recommend that opting for personal loan, secured and unsecured, to meet their personal need, Brits can avoid undertaking heavy burden. Personal loans work as a better alternative for credit cards.