Tips when borrowing money

• Need help with budgeting, borrowing and/or planning for the future? Try the FSA's Financial Healthcheck or Visa Europe's Better Money Skills website.
• When working out your budget, look back through your old bank statements - this may help to remind you of those one-off expenses that you'll need to include in your expenditure.
• If you're not on the electoral roll, it's unlikely you will be able to access any credit. You can contact your local council to ensure your details are up to date and accurate.
• Keep up your repayments and don't default or miss payments. If you are in difficulties, contact your lender and look to see if it is possible to change your repayment schedule.
• It's always better to ask your bank first before taking advantage of an overdraft facility otherwise you may run the risk of your payments being returned unpaid (or bounced) and incurring a charge.
• Think carefully about how long the loan is going to take to repay. The item you purchase with the loan may need replacing before you have finished paying for it.
• If you pay your credit card bill too late and miss the payment due date you will be charged a fee by the credit card company. Avoid the risk by setting up a direct debit to automatically pay either the minimum payment or the full balance.
• Credit cards can also offer better protection for your purchases. Under section 75 of the Consumer Credit Act if goods purchased using a credit card cost more than £100 or less than £30,000 then you can make a claim for your money from the credit card company as well as the retailer. This covers not only insolvency, but issues such as items lost in the post or damaged goods and applies even if you only pay for part of the item on the card - as long as the total value of the goods is £100 - £30,000. The law also specifies that you are protected for the item whether it was purchased in the UK, abroad or on a foreign website - that means you'll be protected if you buy online with your credit card.