Landsbanki Guernsey managing director Steve Le Poidevin, left, and chief executive Mark Sismey-Durrant have warned islanders that the days of cheap credit are over and they will have to save before they spend. (Picture by Steve Sarre, 0603041)

SAVE before you spend is the advice to islanders from two bosses of an Icelandic bank. Landsbanki MD Steve Le Poidevin and chief executive Mark Sismey-Durrant said more caution was required in the face of the rising cost of living.

Since the global credit slump has taken hold, consumers have suffered from loans being withdrawn or made more expensive by lenders.

‘Don’t rely too heavily on credit and look around for the right deals,’ said Mr Sismey-Durrant. ‘It’s not difficult these days to get hold of information and choose the product that is right for you. Be sensible, keep an eye open and make informed decisions.’

The era of low interest rates could return one day, but the days of cheap credit were gone forever, Mr Sismey-Durrant said. ‘I don’t believe the banks will ever be caught out by the same mistakes again.’