Abcul warns of new year debt hangover

The Association of British Credit Unions (Abcul) has warned UK consumers that they should plan ahead to avoid the increasingly common new year debt management hangover.

According to the organisation, setting aside small proportions of a monthly income earlier in the year can help to escape potential financial difficulties when the festive period arrives.

Furthermore, Abcul insist that because it exists only to serve the interests of its members, it is in a strong position to assist UK consumers in their efforts to save and to avoid debt management misery.

“A lot of people might not realise that credit unions offer a great range of safe and easy savings schemes for all sorts of needs, including Christmas, as well as low cost loans,” says Mark Lyonette, chief executive of Abcul.

“All we’re saying is that you don’t have to build up bumper bills and dodgy debts to pay for Christmas – just putting a few pounds a week in a safe and easily accessible savings account could make a huge difference.”

Citizens Advice recently called on businesses and regulators in the UK to help resolve the national problem of “soaring levels of personal debt”.