Grants, Loans and Borrowing

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Do you require a grant or loan to help you financially?

If you need financial help with an emergency or disaster you may be able to get an interest free loan or a non-repayable grant from the Jobcentre.

These awards will not count as income and will not affect any other benefits that you are receiving.

You may also want to consider applying for a loan from a lender. 


 

What is a budgeting loan?

If you're on a low income and need help with certain important costs, you may be able to get an interest-free Budgeting Loan from the Social Fund that you pay back.

You may be entitled to a budgeting loan if you are receiving certain benefits and you need help towards the costs of furniture, clothing, rent or removal expenses, travelling expenses, repaying hire purchase or other debts you took out to pay for the above. 

Find out more about Budgeting Loans here.

Other types of borrowing

Gateway Credit Loans

These are a community based social enterprises that operate throughout Torfaen and Monmouthshire. They specialise in small loans, for as little as £50 to £7500.

For further information visit the Gateway Credit Loans website.

Credit Cards:
Many credit card companies are now promoting 0% deals. Used wisely, these can be a cheap form of short term borrowing. But once the interest free period ends you will start being charged interest. If you're only making the minimum payment on your credit card each month it could take years to clear your balance. Find out more about Credit Cards on the Money Advice Service website. 

Store Cards:
These are often offered at the till point in shops, sometimes promising a discount off the cost of the goods. They can be a good way to save money, but bear in mind they tend to charger higher interest rates than most forms of borrowing. So make sure you can pay off the money as soon as you get your bill. Find out more about Store Cards on the Money Advice Service website.  

Payday Loans:
Payday, or paycheque, loans are short term cash advances on the salary you're expecting. They seem like a good way of getting your hands on your wages quicker than you otherwise would, but beware- the interest rates charged are often extreme. APR Rates of 1,000% and above are not uncommon. Compare this to the APRs of many credit cards, the rates of which are 15-20%, and you get an idea of just how expensive this form of borrowing is. Find out more about Payday loans and alternative forms of borrowing on the Money Advice Service website. 

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Money Advice Service

Gateway Credit Union

Housing Debt Helpline