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Affordable Credit

Most people will have been in a position where they need to borrow money at some point. There are a lot of credit options out there but it's worth doing your research into the best option for you and your circumstances before committing to anything that might become unaffordable. 

Unplanned expenses such as your washing machine breaking down can make you feel under pressure to replace it quickly but make sure you know how much you'll end up paying back. Moneyhelper has a useful guide to work out the true cost of what you're borrowing before you commit. 

You might have credit that has previously been manageable but a change in your circumstances could mean you're now struggling to afford repayments. Affordable credit just means credit that is affordable for you and your circumstances. Deciding on the best type of credit for your situation can seem confusing. There is a guide from Moneyhelper that can help you decide on the best type of credit for you. 

When it comes to working out how much interest you'll be paying back, APR rates can seem really complicated. An easy way to think about it is to think of the APR as the additional number of pence you'll pay back on top of every pound. The table below is based on borrowing £100 and shows you how much interest you'd be paying back on top of what was borrowed: 

Loan fromTypical Interest Rate (APR)Interest you pay on top of original amount borrowed
Credit Union27%£27
Retailer Finance70%£70
Doorstep Lender300%£300
Online Payday Lender1250%£1250


Credit unions offer affordable borrowing options to a wide range of people who may not be able to borrow from banks. There are options to suit everyone's circumstances. Learn more from Moneywise Credit Union.

It's important to bear in mind that the types of credit available to you often depend on your credit history. There are a lot of companies where you can check your credit file for free

If you would like further information, you might find the links below useful: 

Loan sharks

Are you worried about loan sharks? Or have you borrowed from a loan shark and not sure what to do? Find out more by visiting our loan sharks information page.

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