Is a doorstep loan right for you?
Short term loans can be an expensive way of borrowing.
They include:
What to think about before getting a doorstep loan
Before taking one out, make sure to check:
- Can you afford to repay the full amount?
- Can you afford the interest?
- What might happen if you fall behind with payments?
What happens if I have doorstep loan arrears?
The doorstep loan agent asks you to catch up if you miss payments. There may be extra charges too.
You get a default notice if you do not catch up. The people you owe can then take further action.
Larger companies may start dealing with your loan from the main office.
- The agent stops calling
- This can make it easier to deal with
Read what your creditors can do.
Remember, your doorstep loan is the same as any other debt.
The agent does not have any extra legal powers.
- They are not a bailiff
- They cannot come into your house
- They cannot take anything from you
- They cannot force you to pay money you do not have
Do you know the agent personally?
It can be a big relief when someone you know offers you a loan. This could be a friend or family member, or someone who lives nearby.
Whoever it is, make sure to check a few things.
They may not be a loan shark or illegal lender. But loan sharks can be hard to spot.
They may use trust or friendship to trap you in debt.
Read our guide to loan sharks to find out more.
Do you need credit to pay for basics?
We can help if you are struggling with money.
Cheaper ways of borrowing include: