David Kuo, head of personal finance at the financial comparison website, said that people are signing up to loans without thinking through the full consequences and total repayment.
“Consumers need to focus carefully on the true cost of any purchase, especially if they plan to borrow money to finance their dreams,” warned Mr Kuo.
“Today, you don’t have to be a big earner to be a big spender. But the ‘buy now, pay later’ culture, coupled with greater access to credit at an earlier age, makes it all the more important for consumers to be aware of what they are paying if they want to avoid sleepwalking into debt.”
He called for better debt management among consumers to ensure that they are planning for their financial future.
Mr Kuo’s warning comes as the Trading Standards Institute claims that many people are at risk of getting deep into debt and other troubles through the use of loan sharks.