You will find there are all kinds of organisations eager to lend you money. Most of them are reputable, like the banks, building societies and finance companies but you need to be careful. Always make sure you know how much you are borrowing, how much you are going to have to pay back and over what period of time.

The following organisations will consider giving you a loan:

• Banks: you can apply to your bank or any other bank for a loan. Ask them to give you a projection of how much it will cost you over different periods of time, for example one, two and three years. Check whether the rate of interest is flexible (i.e. can change) or is fixed.
• Finance companies: often arrange finance through shops which offer credit such as electrical stores.
• Pawnbrokers: you leave something valuable (the pawn) as security with a pawnbroker and you receive a loan based on its value.
• Credit unions: these are becoming more popular. They work when a group of people with a common bond, for example work together or live in the same area join as a group to save a regular amount of money each month. Loans can then be offered to the savers at low rates of interest. Make enquiries with your local council to see if a credit union has been established in your area.