People opting for unsecured loan borrowing, such as credit cards, may themselves with increased debt problems, it has been revealed.

According to the Motley Fool, a number of credit card providers are finding "sneaky ways" to charge cardholders and leaving them with with more interest to pay than on secured loans.

Head of personal finance David Kuo claimed that despite Lloyds TSB’s offer of a zero per cent credit card, he argued "it is nothing of the kind".

He said: "You pay off the debt with the lowest interest first and the highest interest one will continue to roll up. It is just like running up and down an escalator."

Mr Kuo added that a number of unsecured borrowing companies look to catch consumers unaware by mentioning these higher interest charges in the small print of policies "so that people don’t see them and they are not even aware".

Figures by financial charity Credit Action reported consumers were issued some £324 million via secured loans during January, compared to £36 million through unsecured loan methods such as credit cards and overdrafts.

Interfinancial providing you with breaking secured loans news.