Consumers need to think carefully about whether or not they can meet repayments when they choose to use a credit card, one expert has warned.

Liz Dunscombe, director of project and partnership development at Credit Action, explained that the current financial climate makes this more important than ever.

"Credit Action advocates that careful budgeting can alleviate some of the fear that seems prevalent, however examining the consequences of building up debts and then being made redundant would be a wise step to take," she continued.

Ms Dunscombe emphasised that the first thing to do is assess outgoings and whether money is being spent on non-essential items that can be reduced.

Keeping a record of everything spent over a period of a few weeks can prove enlightening, the expert noted, as people can see right in front of them where cutbacks need to be made.