Financial support and advice
Affordable credit
We know that your financial wellbeing is important to you. If you need to borrow money but are finding it difficult to get credit from high street banks, then there are other options available to you:
Moneyline
Moneyline offers small, unsecured loans, often lending to people who struggle to borrow from banks, or who pay too much for their money with higher-cost lenders.
Budgeting loans
This can help pay for:
- furniture or household items, for example, washing machines or other white goods
- clothes or footwear
- rent in advance
- costs linked to moving house
- maintenance, improvements or security for your home
- travelling costs within the UK
- costs linked to getting a new job
- maternity costs
- funeral costs
- repaying hire purchase loans
- repaying loans taken for the above item
You’re only eligible for a budgeting loan if you’ve been on certain benefits for six months.
Credit unions
Credit unions are an alternative to borrowing from or saving with national banks. They’re owned and controlled by their members and offer a range of services including loans and savings accounts.
Many credit unions are willing to offer loans to members even when they have been turned down by banks.
Loan sharks
You may need to borrow some money for a short period of time to help you get through to your next payday, but it’s important that you always borrow from a genuine certified lender and avoid loan sharks. Borrowing money from loan sharks can be extremely dangerous.
Loan sharks are people who illegally loan out money, mainly targeting low-income families. Whilst they will seem friendly at first, borrowing money from them is never a good idea.
If you borrow money from a loan shark, you could be at risk of paying far more interest than you would through any legal borrowing, meaning you may make larger payments for a longer period of time. You may also be subjected to intimidation, violence and threats if you fall behind on repayments.
If you are being harassed by a loan shark or are in immediate danger, please call 999.
Here are some of the tell-tale signs that can help you identify a loan shark before you borrow money from them:
- they will never advertise their services, and mainly get business through word of mouth
- they will never offer any paperwork such as a credit agreement or record of payments (paperwork is extremely important if issues do arise)
- they will keep you in the dark on details like interest rates or how much you owe
- they may take items as security, like passports, bank cards or driving licences to ‘ensure you pay your debt’
- they will increase the debt and may add more charges at any time – remember, their main goal is to get as much money from you as they can
- they will refuse to settle your debt
- they may resort to intimidation, threats or violence and demand large repayments from you
If you have been approached by someone you think is a loan shark, you can report them via the Gov.UK website: Report a loan shark.
If you are being harassed by a loan shark or are in immediate danger, please call 999.
It’s important you always use a legitimate lender when borrowing money. One way to see if someone is a legal lender is to check with the Financial Conduct Authority. The FCA keeps a list of all authorised lenders on the FCA Financial Services Register, so you can easily check from the comfort of your own home.
If you spot a loan shark or you’ve borrowed money from one you can report them anonymously to the England Illegal Money Lending team.
- Phone: 0300 555 2222 (24 hour service)
- Text a report: 07860 022116
What should you consider when borrowing?
If you’re looking for a reputable place to borrow money from, a Credit Union is an option. Credit Unions, where community members pool their savings to lend to one another, are a reliable source for loans and usually have lower interest rates. You will have to become a member and they may ask you to save an amount before you can borrow from them.
One other thing to check is that you are receiving all the benefits you are entitled to. Many people are missing out on benefits that they are eligible for without even knowing it. You can check your eligibility using the Gov.UK Benefits Calculator.
The Government also has loans and grants you may be able to apply for, like an interest-free budgeting loan from the Social Fund. More information about eligibility can be found on the Gov.UK website.
If you are struggling and in need of financial support there are a range of options available. You can find out more information on our Cost of Living pages. Alternatively, you can contact our Housing team.
