Abcul issues credit card warning

A spokesperson for the Association of British Credit Unions (Abcul) has warned that many people around the country could be risking serious debt management problems by borrowing money via a credit card.

Lucia Webster, who is Abcul’s head of membership services, suggests that many people take on credit card debt without appreciating that the amount they borrow could prove extremely difficult to pay back.

Indeed, in some cases consumers are guilty on not being fully aware of the details of their particular credit agreement and subsequently find themselves struggling to clear debt, Ms Webster suggests.

She commented: “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.”

Figures from Credit Action show that the total personal debt mountain in the UK is now worth in excess of £1,363 billion.

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