Credit unions recommended for debt management

Commenting on the collapse of Farepak, which was meant to offer a Christmas debt management plan, the members of the Scottish parliament said that other options could be better.

Dr Elaine Murray MSP, said: “[Credit unions] can make loans available to new members while charging considerably less interest than do major credit providers.

“However, many of their existing members will also want to take out savings or loans to cope with the expense of Christmas.”

MSP Shiona Baird warned that “unregulated banking” exists and told people to be careful of how they make their debt management plans with.

However, credit unions are not-for-profit financial institutions that are controlled by their members, typically providing loans to the financially excluded.

Other forms of debt management exist and for those caught up by Farepack, or are just struggling with their finances in the build up to Christmas, debt advice can help.

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