Credit unions give credit where it's due
Credit unions have welcomed plans by the government to offer funding to improve financial planning advice.
ABCUL - the Association of British Credit Unions - said that details of the initiative, which were announced by Yvette Cooper, chief secretary to the Treasury, were a welcome sign.
Mark Lyonette, chief executive of ABCUL, said the organisation was pleased that the £12 million package had followed on from the recommendations of the Thoresen report, which looked into the provision of financial guidance in the UK.
"As the credit crunch bites and more people are turned down for credit they are likely to need more guidance to plan their finances," he commented.
"Credit unions have a long history of encouraging people to save and spend wisely, and I am sure this initiative will help further."
Credit cards and loans have become increasingly important for consumers as the availability of credit dries up, but experts have been at pains to warn customers to try to manage their debt effectively.
Among the recommendations in the Thoresen report were calls for financial education at all ages, enabling the public to make better decisions on how they handle their money.
"Initially I applied for a loan to consolidate my debts. However, after speaking to one of your advisors, it became clear that a far better solution would be to go on one of your financial management plans...
Everything was made so simple and the continual support and advice you have provided from my initial enquiry and whilst on my financial management plan has resulted in my debts nearly being clear now! I can't thank you enough for your help."
Janet N, Birmingham
