This warning from Moira Haynes, spokesperson for Citizens Advice, comes as consumers make a decision about how much money to spend in the January sales and whether they need to take out credit.
Ms Haynes remarked that lenders ought to think twice about offering unsolicited credit to potentially vulnerable people and should also make sure that people are in a position to repay their debts.
Ms Haynes said: “Low income, combined with badly informed and poorly understood financial decisions, are at the root of many of our clients’ debt problems.
“Improving people’s financial skills and confidence is crucial to helping them manage their money and use credit sensibly.”
Consumer magazine Which? is advising people to shop around for credit so that they get the best possible deal.