Here is a loan calculator which can give you an example of how much a loan from a credit union could cost, compared to borrowing the same amount from a doorstep lender.
Just click the button on slider scale below and move it from left to right to select the loan amount and the number of weeks.
'Doorstep Lender' is a general name for a loan company which sends an agent to your home each week to collect loan repayments.
The interest rate on the following loan calculator is set at 26.8% APR (Annual Percentage Rate)
Please note that the APR varies between credit unions and this calculator is only to be used as an example. Contact your local credit union for accurate information relating to loans.
How much would you like to borrow?
Over how many weeks?
£50.00 + £CALC Interest = A weekly payment of
Total cost of borrowing this amount from a credit union
Borrowing this amount from a doorstep lender could cost you
The example given is for illustration purposes only, based on typical APR of 26.8%133.1.
The 'Doorstep Lender' rate is based on a typical APR of 272%.
If you prefer to budget your money monthly (rather than weekly), The Money Advice Service has a similar Loan Calculator on its website which estimates the monthly repayments based on the amount you borrow. The results differ slightly due to differences in the way in which weekly and monthly interest is calculated, but both calculators give a good indication of the likely costs of borrowing.