Citizens Advice has sounded a warning about the lack of choice in short-term credit.

On International Credit Union Day, the national charity has said credit unions are “part of the answer” but so too are high-street banks who need to start offering alternatives to payday loans.

Gillian Guy, chief executive of Citizens Advice, said: “People are still faced with a stark lack of choice in short-term credit. The experience of thousands of Citizens Advice clients seeking our help with payday loan debts, shows the urgent need to put in place a variety of affordable credit options for people who are struggling to make ends meet. Credit unions can be a part of the answer, along with high street banks doing more to offer responsible short-term loans.

“All lenders must treat borrowers fairly and sympathetically. At a time when so many people are unable to cope with their bills, high interest and harsh practices by lenders can send people over the edge.”