Money guides
How borrowing and finance work, what to check before you sign, and where to get free, impartial help.
What these guides cover
Many big purchases, from dental treatment to new windows, are offered with finance. Interest-free and interest-bearing plans can both be useful, but they are credit agreements, so it pays to understand the total amount payable, the APR and what happens if you miss a payment. Our money guides explain the basics in plain English and point you to free, impartial help.
- Paying for big purchases: 0% and interest-bearing finance compared.
- Before you borrow: APR, total repayable and credit checks explained.
- Checking a firm: how to use the FCA Register.
- Free help: where to go if you are struggling with debt.
0% and interest-bearing finance: what to check
Retailers and clinics often offer finance for larger purchases. Both kinds are credit agreements, so read the terms the same way:
| Check | Why it matters |
|---|---|
| APR | The yearly cost of borrowing, including interest and compulsory fees. 0% means no interest if you keep to the terms. |
| Total amount payable | The clearest single number to compare: everything you will pay back. |
| Term and monthly payment | A longer term lowers the monthly payment but can raise the total cost. |
| Deposit | How much you pay upfront, and whether it is protected. |
| Credit check | Applying usually involves a credit check, which is recorded on your credit file. |
| Missed payments | What happens, and what it costs, if you miss a payment. |
How to check a lender or broker
Firms that lend or arrange consumer credit in the UK generally need to be authorised by the Financial Conduct Authority. You can search the free FCA Register by firm name before you sign anything.
A simple monthly budget in four steps
- Income: add up what comes in each month after tax.
- Fixed costs: rent or mortgage, council tax, energy, insurance, loan payments.
- Flexible costs: food, travel, subscriptions and everyday spending.
- What is left: decide how much goes to savings or larger planned purchases.
MoneyHelper's free budget planner can do the sums for you.
If you are struggling with money
Free, confidential debt advice is available from MoneyHelper, Citizens Advice and StepChange. Because good advice is free, there is no need to pay a company for it.