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Borrowing

Always consider the total cost of a loan, including any fees. Banks, building societies, or credit unions are usually the most affordable options. Avoid payday lenders, high street loan shops, or doorstep lenders. While they may offer quick cash, their high interest rates can make the loan much more expensive in the long run.

Money Helper has a guide on how to choose a responsible lender. 

https://www.moneyhelper.org.uk/en/everyday-money/credit/options-for-borrowing-money

 

Hull and East Yorkshire (HEY) Credit Union

If you still need to borrow money, a Credit Union might be a better option. However, please be aware that you are still taking on debt, and you will need to repay the money you borrow. Keep in mind that borrowing money comes with an Annual Percentage Rate (APR), which is the cost of borrowing, and it can affect how much you end up paying back in the long run.

Visit HEY Credit Union for more information.

 

Notts and Lincs Credit Union has merged with Clockwise Credit Union

This merger took place on 1 February 2025.

If you were a member before this date, you’ll stay a member and can continue to use your account as normal.

New members in Lincolnshire can now join Hull and East Yorkshire (HEY) Credit Union, which will provide credit union services in the area.

For more details, visit the Clockwise website.

 

Local Support

Find a local advice centre on our Advice and Support Services page if you need advice on money.

You may be eligible for a budgeting loan if you’ve been receiving certain benefits for 6 months. You will need to repay what you borrow. Find out more at Universal Credit advances - GOV.UK

We recommend avoiding payday loans and high-interest credit. Instead, talk to an Advice Service if you're struggling. They can guide you to the right help for your situation.

Here are some safety tips from www.stoploansharks.co.uk to help protect you and your loved ones from loan sharks:

  • Avoid Loan Sharks: If you're struggling financially, a loan shark may seem like a quick fix, but these illegal lenders are dangerous. Debt can spiral quickly, so consider other options and think carefully before taking out a loan.
  • Protect Your Information: Never send money, share credit card details, or provide personal documents to people you don’t know or trust. Your personal information is valuable—protect it from criminals who could use it to harass or harm you and your loved ones.
  • Verify Your Lender: Before borrowing, ensure your lender is legitimate. Loan sharks operate illegally without Financial Conduct Authority (FCA) approval. Always check the Financial Services Register to confirm you're dealing with a licensed lender.
  • Consider Ethical Alternatives: Loan sharks prey on vulnerable people, but there are ethical, not-for-profit alternatives like credit unions. These organisations help people save and borrow responsibly. You can also find other community lenders at https://www.findingfinance.org.uk/.
  • Beware of the Consequences: Borrowing from a loan shark can lead to devastating financial, emotional, and social consequences, affecting your mental health, relationships, and work life.

If you're worried about someone or need help yourself, Stop Loan Sharks offers confidential advice and support. Contact their 24/7 helpline at 0300 555 2222 or visit www.stoploansharks.co.uk. Live Chat is also available on the website from 9am to 5pm, Monday to Friday.

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In this section

  1. Money Talk Lincs
  2. Managing Money and Debt
  3. Food Help
  4. Claim Benefits
  5. Council Tax Support
  6. Pension Credit
  7. Plan and Budget
  8. Reduce Your Bills
  9. Borrowing
  10. Saving
  11. Local Support and Resources

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