Loans and savings

Taking out a loan to help you manage everyday income and expenditure is not advisable and you should seek help to put together a budget

  • If you need to get a loan to help pay for a one off expense, such as replacing a household appliance that has broken down, then consider whether you can afford this by preparing a budget (See managing money and debts section above).
  • Avoid using Payday lenders as the interest rates are disproportionate and the repayment rates are high
  • Never use a loan shark, these are illegal lenders who charge very high interest rates and can use immorale methods to recover loan payments
  • If you are considering taking a loan out and can afford to do so, shop around for the best rate
  • If you are claiming benefits you might be entitled to a budgeting loan or Universal Credit advance payment, talk to the DWP if this applies to you.

You could also consider a loan from  who will help to support you to set up a savings account at the same time as taking out a loan.