Increasing numbers of people are building up their credit card debt without realising the implications of such borrowing, one advisory group has stated.

Thomas Charles believes that, because people are unaware of the interest rates charged on credit card products, they are creating burgeoning debts unwittingly.

James Falla, director of Thomas Charles, states: "In reality, most people don't actually know what rates they're paying.

"Very few people, in my experience, would consider the actual rate of interest on the card, which obviously is not a very good thing."

Such lack of understanding makes it easy for people to find themselves in debt difficulties - although a debt consolidation loan might be an appropriate way of recovering from such a situation.

Mr Falla goes on to suggest that rather than searching out a low rate loan or other borrowing option, many people took on their credit card simply because it was the first to be offered to them.

Meanwhile, figures from loans and debt advice charity Credit Action reveal that the collective sum of personal debt in the UK in October stood at £1,391 billion.ADNFCR-1287-ID-18393535-ADNFCR

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