An increased number of people are seeking loans from credit unions to pay off credit card debts run up over Christmas, according to the Irish League of Credit Unions.

Member credit unions say many three- and four-figure loans are being taken out solely for the purpose of clearing card debts built up over the Christmas shopping season.

Some credit union members are also withdrawing shares to pay credit card bills to avoid the high rates of interest payable if card balances are not cleared each month.

These interest rates vary between about 15 and 20 per cent.

Mr Liam O'Dwyer, chief executive of the league, said it appeared that many people "bit off more than they could chew" in the run-up to Christmas.

"The number of loans being given out hasn't increased dramatically but loans specifically for the purpose of dealing with credit card excesses are accounting for much of the early year business," he said.

Mr O'Dwyer urged consumers not to overuse "plastic" but to look for cheaper forms of credit.

He said people should not be taken in by the convenience of credit cards.

"There is a ferocious sting in the tail with credit cards that is doing huge damage to people's personal finances when it's time to cough up," he said.