Credit unions
Credit unions are non-profit community-based organisations. They offer members loans, savings and current accounts.
People pay into the union to save or to borrow money if they need to. The idea is to help people:
- Take control of their money
- Save what they can
- Borrow only what they can afford to repay
Most credit unions give small loans of £50 to £3,000.
Search for your local credit union by visiting the Association of British Credit Union’s website, or calling 0800 015 3060.
Budgeting loans
You may be able to get a budgeting loan if:
You can use this to pay for essentials like rent, furniture or clothes.
Here is how it works:
- The smallest amount you can borrow is £100, but how much you get depends on your circumstances
- The money is paid straight into your account
- It is interest free
- You normally have two years to pay it back
Bank overdrafts
Ask your bank for a small bank overdraft.
Fees include:
- Interest, which is charged until what you borrow is paid back
- An administration charge
- An arrangement fee
- Monthly fees
Make sure you can pay back an overdraft before you set one up. It is important to understand the costs and check you will not exceed the limit.
Salary advances
Some companies work with employers to offer advances on salaries. This is then paid back at an agreed rate.
In some cases there is no interest on the advance, but there may be fees.
Ask your employer if they run one of these schemes and whether you are eligible.
Like any loan, make sure a salary advance is the right option for you. Your employer should think about this too.