People seeking ways of covering debts and managing repayments should make sure they avoid turning to unregulated lenders.
That's according to Iain Wrenshall, director at Debt Help UK, who said that borrowing from unregulated sources sometimes isn't safe.
"There is the personal threat to their wellbeing if the lender fails to abide by the law and the protection that the law gives the borrower," he said.
Recent research from Lloyds TSB revealed that 59 per cent of Britons think they will overspend by an average of £174 each this Christmas.
"Generally, people ignore the root of the problem … they are usually spending more money than they are able to earn," Mr Wrenshall explained. "As they lean more heavily on credit, their ability to afford more credit diminishes."
He added that there are "non-borrowing" alternatives to expensive or unregulated loans available to people struggling with debt.
