High cost lending
High cost lending is a growing concern in Rotherham, where around a third of adults are struggling to pay their debts. The speed and availability of some loans can make them seem very attractive, but the interest rates on these loans can be very high. This means many borrowers are unable to meet the repayment costs and can soon find themselves in a spiral of debt.
Alternatives to high cost lending
There are better alternatives to payday loans and doorstep lending:
- Credit unions
Credit unions are community-based banks that offer low cost borrowing options and can sometimes help when a bank cannot. They can offer you access to ordinary bank products and help you with your finances.
- Bank accounts
Basic bank accounts provide a no frills, no overdraft current account service. With a basic bank account you can receive money, pay bills and access cash machines
Banks and credit unions are both regulated by the Financial Conduct Authority.
Advice on money problems
There are a number of agencies offering free, independent, impartial and confidential advice and information for people in financial difficulty.
For more details see the ‘Your Money, Your Choice’ booklet, which provides information about organisations offering help and advice as well as affordable credit and banking services to help you borrow responsibly.