# data[].attributes.body
It's always good to have money behind us just in case, but if you are paying high interest charges, then those savings are better used paying off your debt

# data[].attributes.body
if you know that you won't be able to meet your payments, you could seek an authorised overdraft from you bank. if you go overdrawn with no overdraft in place, the charges can be as high as for payday loans

# data[].attributes.body
Don't bury your head in the sand, if you are struggling, speak to someone and get free, impartial advice

# data[].attributes.headline
7. Use a personal loan to consolidate your debt

# data[].attributes.subject
7. Use a personal loan to consolidate your debt

# data[].attributes.body
Often the interest charged on various debts will be high and it may be more beneficial to pay off all the debt using a consolidation loan for which you pay a lower rate of interest

# data[].attributes.headline
6. Pay more than the minimum on credit agreements (store cards, credit cards, catalogues etc.)

# data[].attributes.subject
6. Pay more than the minimum on credit agreements (store cards, credit cards, catalogues etc.)

# data[].attributes.body
It will take you much longer to pay off the debt by only paying the minimum amount each month.

# data[].attributes.body
Your credit score gives potential lenders an overview of how you manage your finances. The better you are at managing your finances the better the rates you will be offered when applying for credit. Find out more below

# data[].attributes.attachment_link.description
Credit reports help you keep an eye on your financial health. Find out how to access your report and score for free, and improve your chances of being accepted for credit.

# data[].attributes.headline
4. Avoid Payday loans and other high forms of high cost credit

# data[].attributes.subject
4. Avoid Payday loans and other high forms of high cost credit

# data[].attributes.body
Payday loans if used at all, should only be used as a last resort and for a very short period of time as they are incredibly expensive. If you have a payday loan and can't afford the repayments there's advice below from Which?

# data[].attributes.attachment_link.readable_text
What are payday loans?

A payday loan is a short-term loan that usually comes with high interest rates and charges.

The loan will be paid into your bank account and in most cases will need to be repaid in full at the end of the month.

Payday lending was originally designed to tide people over until their next payday, but some loans are now available for a longer period of time.

Payday loans are also sometimes called cash advance loans or check advance loans.

Lending guidance for payday loans

The Office of Fair Trading (OFT) irresponsible lending guidance requires lenders to treat borrowers in financial difficulty fairly with patience and tolerance, which essentially means they should work with you to come up with a plan to repay your debt over a reasonable timescale.

Any action your lender takes must also be proportionate. For example, they can't try to repossess your house just because you haven't paid your credit card bill.

If you believe that a payday lender has been irresponsible, you can complain about the lender.

Payday loan customer charters

If you've borrowed money from a payday loan company, check if they're a member of one of the main trade bodies, such as the Consumer Finance Association (CFA), the Finance and Leasing Association (FLA), the Consumer Credit Trade Association (CCTA) or the BCCA.

The main payday lenders have signed up to a customer charter which requires members to:

Deal with cases of financial difficulty sympathetically and positively

Tell you how the payday loan works and the total cost of the loan (including an example of the price for each £100 borrowed, together with fees and charges) before you apply

Freeze interest and charges if you make repayments under an agreed and reasonable repayment plan, or after a maximum of 60 days of non-payment

Help paying back your loan

If you're struggling with a number of debts and need help, it's worth speaking to a free debt advice organisation like Stepchange or National Debtline.

They'll help you find the right debt solution for your personal circumstances and may help you negotiate new or reduced payment terms with your payday lenders.

Don't use a commercial debt-management company. There is plenty of free, independent debt advice you can use.

Visit the Which? Money guides more guidance on the best personal loan options for your circumstances and how to manage debt.

# data[].attributes.attachment_link.title
I can't pay back my payday loan, what can I do?

# data[].attributes.attachment_link.description
A payday loan is a short-term loan that usually comes with high interest rates and charges. The loan will be paid into your bank account and in most cases will need to be repaid in full at the end of the month.

# data[].attributes.body
They tend to be cheaper than other lenders and Which have put together some useful advice

# data[].attributes.attachment_link.readable_text
What is a credit union?

Credit unions are non-profit financial organisations, traditionally set up by members with some kind of community in common - be it where they live or their profession. But this is changing.

There are more than 500 credit unions in Britain, so almost everyone has access to one.

Until 8 January 2012, credit unions were hampered by restrictions that meant all of their members had to have one common bond - such as living in the same geographical area or working for the same employer.

Credit unions can now extend membership to several groups, meaning more people can be eligible to join.

For instance, a credit union providing services to anyone living or working in Pontefract will now be able to serve all the employees of a company, too - even if they don't live or work in Pontefract.

How are credit unions run?

Credit unions are owned and controlled by their members, so they have no outside shareholders to pay. They are run by volunteers elected by the membership.

Any profit that a credit union makes is used to develop the credit union and provide a return to savers.

Are you eligible to use a credit union?

You'll need to check whether there's a credit union in your area, or if there's one for people from your profession - an easy way to do this is by searching the site Find Your Credit Union - set up by The Association of British Credit Unions Limited (Abcul).

You can also call Abcul on 0161 832 3694.

As mentioned above, some credit unions will have relaxed their eligibility criteria - but you'll need to check first.

What services do credit unions offer?

Credit unions typically offer savings and loans, but some also branch into current accounts, mortgages and prepaid cards.

Reportedly, around 60 credit unions now offer current accounts, 40 have a prepaid card service, but very few offer mortgages.

As savings and loans are the most common services on offer, the rest of this guide focuses on how they work.

Credit union savings: is my money safe?

Yes - your savings are as safe as they would be with a bank or building society.

Credit unions are licensed deposit-takers, authorised and regulated by the Financial Conduct Authority.

Just like ordinary savings accounts, they are fully covered by the Financial Services Compensation Scheme (FSCS) up to the standard limit of £85,000 per individual.

Do I earn interest on credit union savings account?

Previously, credit unions could not pay interest on savings, only a retrospective dividend.

But, credit unions can now pay interest on savings, which means it will be easier for people to compare the rates of return with other savings providers and will help credit unions attract more savers - although most still pay a dividend.

Contact your local credit union to find out more information about what level of dividend it has paid in recent years, or whether it offers interest on savings.

Alternatively, if you want to compare rates on traditional savings accounts and cash Isas, the Which? Money Compare tables let you search hundreds of accounts from providers large and small, so that you can find a good home for your nest egg.

Can organisations can join a credit union?

Under the old rules, only individuals were able to become members of credit unions. The new rules mean that organisations themselves can join a credit union (up to a maximum of 10% of the members) and use the financial services it provides.

A community group, housing association or local employer, for example, may now be able to use a credit union to manage its money, with the added advantage that the money is kept in the community.

Saving with a credit union: FAQ

We give answers to some of the most common questions about saving with a credit union.

Are credit union savings taxable?

# data[].attributes.attachment_link.description
Credit unions are non-profit financial organisations, traditionally set up by members with some kind of community in common - be it where they live or their profession. But this is changing. There are more than 500 credit unions in Britain, so almost everyone has access to one.

# data[].attributes.headline
2. Reject future interest rate increases

# data[].attributes.subject
2. Reject future interest rate increases

# data[].attributes.body
You won't be able to make further purchases but you can pay off the balance in full (if you are able to) and avoid excessive interest charges)

# data[].attributes.headline
1. Switch to a 0% balance transfer credit card

# data[].attributes.subject
1. Switch to a 0% balance transfer credit card

# data[].attributes.attachment_link.title
Compare 0% Balance Transfer Credit Cards

# data[].attributes.attachment_link.description
Balance transfer credit cards allow you to shift existing credit card debt and repay it over a longer period or at a cheaper rate. Which? Money Compare talks you through the best options currently available.