Borrowing money affordably and safely

You should never borrow money to pay your rent or other bills. If you have money worries, speak to us first.

When considering borrowing money, it’s important that you spend time shopping around, researching what’s on offer and getting advice.

Never borrow money to pay off existing debts, or on impulse and make sure you work out your budget.

With a range of different options out there, it is important that you can make an informed choice based on your needs and situation.

Who should I borrow from?

Banks and building societies

Reach out to your bank or building society and talk to them about your financial situation. They will be able to offer advice and support, with a range of options available from personal loans to establishing overdraft limits.

Credit unions

Credit unions provide short-term loans for small sums of money at lower interest rates than payday loans.

Westcountry Savings and Loans are one of several credit unions who can help with short-term loans.

Who should I not borrow from?

Loan sharks

Do not borrow money from loan sharks. They are illegal moneylenders and should be reported to the Illegal Money Lending Team (ILMT). To report a loan shark in complete anonymity, you can:

• Visit www.stoploansharks.co.uk
• Call 0300 555 2222
• Email reportaloanshark@stoploansharks.gov.uk

Payday loans

Pay day loans are often tempting when money is tight and you need a quick way to get cash, but they can come with high interest rates and fees, and it is easy to get caught in a debt trap, where you need to take out new loans to repay the old ones.

Credit Cards

Do not use high-cost credit cards to pay off your essential bills. If you don’t pay off the full balance by the end of the month, interest rates can vary widely depending on your card type and provider and they can be very expensive.

Buy Now, Pay Later services

Buy Now, Pay Later services like Klarna and Clearpay can make shopping feel more affordable by letting your spread the payments over time. But it's important to use them wisely, late fees, credit score and overspending can have a negative impact on your long-term financial stability.