It’s important to explore all the possibilities first before you consider borrowing money.
- Make sure you’re getting all the income you’re entitled to.
- Use an emergency fund if you have one (money you’ve saved for an emergency, for example in a savings account).
- Claim on insurance and pensions.
- Budget and make savings if possible.
Borrowing to deal with existing debts you can’t repay is rarely a good idea. Talk to a trained debt adviser first about options for dealing with your debts or credit commitments. You can speak to one by calling StepChange Debt Charity.
If you do borrow money, it makes sense to choose the cheapest type of borrowing. See the table below of the most common types of borrowing you could consider, listed from the cheapest to the most expensive.
Whenever you borrow money, you should try to have a clear idea of how you’ll make the repayments. You could use our online budget planner to help you do this.