Borrowing
Whenever you are about to borrow some money, or buy anything using a credit card,
ask yourself the following questions:
- Do I really need to borrow this money?
- Am I getting the best interest rate available?
- Can I afford the repayments? Use the loan repayment calculator on the Money Facts
website to help you work this out.
- Have I worked out the total amount that I will be repaying?
If you're happy with your answers then go ahead. If you're not happy, then ask yourself
if you have any other options.
Affordable loans
It can be risky to borrow money if you are on a low income – it’s easy to fall behind
on repayments, and this could mean that you end up struggling to afford essentials
like food or rent.
But sometimes, rightly or wrongly, we feel a short-term loan is the only way we
can manage to cover an important, perhaps unexpected expense.
People who think they will be unable to qualify for a loan on the high street sometimes
borrow from "doorstep" lenders and loan sharks who charge very high interest rates.
But you can now get a low-interest loan through not-for-profit lenders, like credit
unions, for as little as 2% interest a month.
This could save you a lot of money. For example, a £300 loan from a doorstep lender
could cost over £140 in interest, so you would actually have to repay £440. But a
credit union would charge less than £24 in interest on a £300 loan – so you would
pay back around £324, saving over £100.
- Read more about how to get an affordable loan.
- See a list of
organisations offering affordable personal loans.
- Find out how to get an affordable loan in the Wakefield district through our partner
the
White Rose Credit Union.
- If you’re considering a loan, fill in the loan calculator on the Money Facts website to see if you could
afford the repayments.
- Learn more about how to get an affordable loan at our upcoming "Money Matters –
Everyone Counts"
information sessions.
- Read more about the dangers of using
loan sharks
and doorstep lenders.
-
Get Advice
if you can’t afford to repay a debt
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