Borrowing money
If you’re considering borrowing money, it’s important to be aware of the risks involved.
On
Short-term borrowing
It can be tempting to borrow money when things are a bit tight.
It may be that you have access to short-term loans or payday loans. In addition to this, buy now pay later (BNPL) services (such as Klarna or Clearpay) have become increasingly popular and easy to use.
It’s really important that you carefully consider the risks of short-term borrowing, as it can have long lasting and serious effects on your finances.
For more information about short-term borrowing:
- Money Saving Expert - Buy now, pay later: how it works and what to look out for
- Save the Student - Klarna reviewed: Is it safe to buy now, pay later?
- Money Saving Expert - Short-term and payday loans
- Save the Student - “My first payday loan was £100 for a night out. 5 years later I was in £26k of debt”
If you have debt
If you do have debt, make sure you make your repayments on time to avoid impacting your credit score (student login required) or incur extra charges.