I Need To Borrow Money

There will be times that you need to borrow money for a variety of reasons. Before entering into any agreement, it is important that you check that you can afford the repayments and to do this, please provide a household budget by following this link.

In the first instance, consider whether you have any family members who could afford to lend you the money, this will often be free of any interest charges and the repayment period may be over a longer period to match your budget. However please consider the family stress that could occur if you default on repayment or if your family need the money back quickly or in an emergency.
You should then consider the Government’s social fund. These loans can be given as grants which do not need to be repaid or alternatively, will be interest free. Availability could depend on the type of benefits that you receive so please follow this link to check your suitability,
www.direct.gov.uk
Social fund telephone number- 08000 556688

If the above options are not available to you, then the strength of your own credit rating will then influence where you should go next.
If you consider your credit rating to be good, then ensure that you shop around for the best deal to suit your budget. The following internet sites may help you,
www.moneysupermarket.com
www.moneysavingexpert.com

Use the Annual Percentage Rate (APR) to compare the true cost of each loan and read the terms and conditions carefully. Don’t forget to allow for any upfront fees. If your credit rating is deteriorating, then a credit union may be able to assist you.

This is a financial co-operative, owned and run by its members. It is authorised and regulated by the Financial Services Authority. It is a safe place to save, offers affordable credit and encourages good money management.
Loans are available to all members but you should normally have been saving with them for a few weeks before applying. The interest charged can be far less than the high street banks or doorstep lenders, depending upon your circumstances and savings record with them.

In addition, a company called 5 Lamps are able to make loans available in our area. This company is Government funded and whilst their interest rates are more expensive than a Credit Union, they remain cheaper than doorstep lenders,
www.fivelamps.org.uk
Tel: 0800 458 0120

Try to avoid borrowing from doorstep lenders, whilst they may offer convenient payment collection on a regular basis, their interest equates to the most expensive option and you could end up paying the original amount borrowed twice or three times over.

If you are worried about a loan that you have taken on the doorstep or that you are considering to, please speak to the illegal money lending team.
Email: - stoploansharks@birmingham.gov.uk
Tel: 0300 555 2222