Credit 'doesn't come for free'

02 October 2007

Borrowers must be aware that "there is no such thing as free credit", the Association of British Credit Unions (Abcul) has stated.

The trade association for credit unions in England, Scotland and Wales emphasised the need for Britons to think about their saving habits in order to minimise credit card borrowing.

Lucia Webster, head of membership services at Abcul said: "Credit unions believe in encouraging people to think about their saving and borrowing habits and they understand that for many people credit cards do not help their overall situation.

"Everyone should be aware that there is no such thing as free credit and that if they borrow on a credit card, they should do so only at a level they can afford."

She added: "Credit unions across the country offer a wide range of services to all sectors of the community, including people who may have difficulty accessing high street banking services or have been denied credit by mainstream lenders."

According to a Family Resources Survey for the period 2005 to 2006, on average 97 per cent of households had at least one type of saving account.

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