If you find yourself in crisis and are considering borrowing money to help you get through, please speak to us!
Borrowing money can seem like an easy option but it can end up with you repaying a lot more than you originally borrowed.
Initially, you may be able to access grants that you don’t have to pay back. This could be following a crisis or emergency and can include furniture or cash payments.
For some people who claim benefits there may be the option to have an advance which is repaid out of your benefits and doesn’t incur any additional fees or charges.
Borrowing from a payday or doorstep lender might seem like an easy option but can be very expensive, and you may end up paying back significantly more than you borrow. There are also illegal money lenders called ‘loan sharks’ who are not registered money lenders and lend money illegally.
Loan sharks usually charge extortionate rates of interest which can run into thousands of percent. This creates a situation where the borrower is never able to repay the loan. Some borrowers are forced into criminal acts such as theft or drug dealing to enable them to repay loans.
For more information on loan sharks:
To report a loan shark, visit GOV.UK.
Using Dragon Savers to borrow money is a better option, if you do need to lend. To find out more, click here.
If you need support with your finances, our Money Advice Team are available to help.
For more support with the cost of living crisis, visit our dedicated Cost of Living page.