Warning: Late repayment can cause you serious money problems.

For help, go to moneyadviceservice.org.uk

Managing Your Money

You need to be sure that you can afford the monthly repayments on any loan. Please enter the financial information into the application as accurately as you can as the lender will use this in order to determine the affordability of the loan. Many lenders will also have methods to validate the accuracy of this information, if they find that you have not been truthful they may decline the application on this basis.

As part of lenders responsible lending commitment they want to give you as much help as they can so that you can decide whether their loan is right for you.

Income

Please ensure that you use the net amount that is on your payslip or what is paid into your bank. It is too easy to think that because you are on a £12,000 per year salary that your income is £1,000 per month. After you pay tax, national insurance, pension contribution and any other item deducted at source what you have available may be somewhat less.

Be careful with overtime, commission and bonuses. Your loan may last over several months. Just because you had 15 hours of overtime this month may not mean that this will be the same next month. Our advice is only to include overtime and commission if it is regular and guaranteed and not to include irregular and unknown bonus income at all.

Expenditure

Watch out for those annual, 6 monthly or quarterly expenses, they are easy to forget. If you pay your house or motor insurance annually or pay for school dinners termly, these will have an effect of lowering your left over income in these months.

With those smaller discretionary items make the decision whether to include them or go without if needed. If you spend £3.00 per day on a coffee on the way to work, it may only seem like small change each day, but that is £60.00 per month (average) that needs to go into the budget. If you can live without this then fine, if not be sure to include this in the "living expenses" section of the application.

Allow a sensible ‘buffer’ for those unexpected expenses. The school trip, the prescription charge or Auntie Jeans birthday present. Don’t make things so tight that one small unexpected expense means you cannot afford all of your commitments.

The Money Advice Service

If you are in any doubts about the suitability of our loan or its affordability, or indeed anything about your finances, then the Money Advice Service offers FREE independent and unbiased advice. They can be contacted in confidence on 0300 500 5000 (Monday - Friday 8am to 8pm)

 

Representative APR