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Borrowing money

Borrowing money can be a useful way to spread out your costs, manage larger payments and unexpected costs. Borrowing money is a serious decision and you need to be confident you can afford the repayments otherwise you could end up paying much more in the longer term, find it difficult to borrow money in the future or in the worst circumstances even lose your home.

Citizens Advice have a section of their website explaining what options there are for borrowing money. The Money and Pensions Service provide information and advice on borrowing money through its Money Helper tool.

For help with debt, visit our debt help section.

 

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Borrowing money at a lower rate of interest

Credit Unions are membership organisations which can allow you to borrow money at lower rates of interest compared to other lenders. You may be able to access a credit union through where you live, through your work or through another connection like your housing association, local place of worship or professional organisation.

You can search for a credit union by visiting the Find Your Credit Union website.

London:

  • The London Mutual Credit Union provides services for people who live and work in Southwark, Lambeth, Westminster or Camden, as well as people working in health and education occupations in London and members of the armed forces nationwide.

North London:

South London:

  • Croydon Plus provides services for people living, working, studying or volunteering in Croydon, Sutton and Merton.

West London:

  • Hillingdon Credit Union people living or working in Ealing, Hammersmith and Fulham, Hillingdon, Harrow, Hounslow, Kingston Upon Thames, Merton, Richmond upon Thames, and Wandsworth.
  • London Credit Plus Credit Union provides services for people who live or work in Hammersmith & Fulham, Wandsworth, Kensington & Chelsea, Richmond, Hounslow, and Westminster as well as members of the Unite the Union living or working in London.

East London:

  • The London Community Credit Union provides services for people who live, work or study in Hackney, Haringey, Islington, Newham, Tower Hamlets, Waltham Forest and the City of London.
  • Liberty Credit Union provides services for people who live or work in Havering, Barking and Dagenham and Redbridge.

Payday loans

If you are struggling to make ends meet, you may consider a payday loan. A payday loan is a short-term loan intended to tide you over until you next get paid.

However, interest rates on these loans can be very high and can escalate quickly, so if you are thinking about taking about a payday loan, it may be worth considering alternatives.

Payday loans can be a very expensive way to borrow money and many people take out a payday loan because they struggle to get credit elsewhere. StepChange offers guidance on alternatives available.

If are struggling to repay existing payday loans, StepChange provides some useful information on what you can do to deal with the debt.

If you think you may have been subject to illegal moneylending, information and resources on what you can do are available from Citizens Advice and StepChange.