Debt & borrowing

Debt and borrowing: Making safe choices when money is tight

Who this guide is for

This guide is for people who are worried about money and are thinking about borrowing, or already have some debt and want to understand their options before taking on more.

If you’re already struggling with multiple debts or missed payments, you may find our more practical step-by-step guide helpful: How to deal with debt.

What do we mean by debt and borrowing?

• Debt is money you already owe.
• Borrowing is taking out credit you agree to repay later, usually with interest.

Borrowing can sometimes help with short-term problems, but it can also make things harder if repayments are not affordable.

Need a basic money refresher? Check our Understanding your money guide.

If you’re unsure about any financial terms used here, we recommend this glossary.

Is borrowing the right option for you?

Before borrowing, it’s important to pause and check whether it will genuinely improve your situation.

Borrowing may help if:

• You have a temporary shortfall (for example, a one-off unexpected cost)
• You can clearly afford the repayments
• The borrowing replaces a more expensive debt

Borrowing may not help if:

• You are already missing payments or relying on credit to cover essentials
• Repayments would leave you short each month
• You are borrowing to pay off borrowing, without a clear plan

Understanding different borrowing options

Not all credit works the same way. Some options are safer and cheaper than others.

Common types of borrowing

• Credit cards – flexible but costlier if you don’t clear them monthly
• Overdrafts – easy to use, but charges can accumulate
• Personal loans – fixed repayments, helpful for budgeting
• Credit union loans – often lower interest and more supportive. Find a credit union near you.
• Buy now, pay later – easy but can add up quickly

Always check the total amount you’ll repay, not just the monthly cost.

For information about responsible borrowing and guidance on fair credit, visit Responsible Finance.

How to check if borrowing is affordable

A quick affordability check can help prevent future problems.

Ask yourself:

• How much do I have left after essentials each month?
• Can I still manage if costs increase or my income changes?
• Have I allowed for interest and fees?

Creating a simple budget can make this clearer — if you need help, start with our Understanding your money guide.

Alternatives to borrowing

If borrowing feels risky, there may be other options worth exploring first.

• Talking to creditors about payment plans
• Checking benefits or grants you may be entitled to
• Getting free, confidential debt advice
• Looking at short-term support from charities or employers

If you already have debt

If debt is starting to feel overwhelming, getting help early can make a big difference.

You don’t have to deal with it alone. Free, confidential advice can help you:

• Understand what you owe
• Prioritise debts
• Create a realistic plan

Getting support

If money worries are affecting your wellbeing, support is available.

Whatever you're going through, we're here for you. Don't struggle in silence - contact us today: 

• Call: 08081 311 333
• Email: supportservices@ben.org.uk
• Chat online: click here
• Request a callback: click here