Pay-day loans, doorstep lenders and loan sharks

Think carefully before you borrow money: even if you're desperate, there are other options, such as a credit union or emergency grant.

• Credit unions are set up for the benefit of the community, and profits reinvested to improve the union's services and products. Find your nearest credit union at www.findyourcreditunion.co.uk
• You can apply for an emergency cash grant of £30 - £60 if you are in financial crisis.

If you think you have borrowed money from a loan shark you can report them at www.gov.uk/report-loan-shark.

If a payday loan broker has withdrawn money from your bank account to pay for their comparison services, you should contact the Financial Ombudsman for advice.

Buy now, pay later

Klarna/Clearpay and other buy now, pay later (BNPL) options, can seem an easy way to borrow, but it’s still debt. Can you afford the repayments.  

BNPL is interest-free, but missing repayments can hurt your credit file if late fees apply. And BNPL has little consumer protection, unlike credit card purchases, so refunds aren’t as easy. 

For more information visit the Money Saving Expert website.