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Credit Cards
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Your money in tough times.
Ever wondered where all your money goes?

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Wednesday, 3 March 2010

Paying your benefits or salary onto prepaid cards
Some prepaid card providers have been advertising the benefits of having your salary or state benefits paid onto them. But the charges can be high - make sure you understand the costs and the alternatives.

Ways to borrow money for young people

Thinking of borrowing money? Then do you understand your options? You can borrow money in several different ways, such as loans and credit cards, from a range of companies and organisations. The upside is that you get a lot of choice; the downside is that it can sometimes feel overwhelming. Taking on a loan or credit agreement is a serious commitment, and it's up to you to decide what best suits your financial needs.

The articles linked to below will help you understand:

  • the different ways of borrowing money
  • how to work out what suits your financial needs best
  • how to protect yourself from fraud

Quick intro

Different ways of borrowing money
People borrow money in lots of different ways. The most common include:

  • personal loans
  • overdrafts
  • credit cards
  • store cards
  • hire purchase
  • family or friends
  • loans from a credit union for young people and students

To complicate it further, often different features and options are available. Use the resources on offer to help you get to grips with them and work out what's best for you.

What is right for you?

Understanding how each way of borrowing money works will enable you to decide what suits your needs the best. Young people and students may have different needs to older people. When deciding how to borrow money you need to think about the following:

  • How much do you need to borrow? For example, a personal loan may be better for more expensive things like cars.
  • How long do you want to borrow for? If it is only for a short period, an overdraft may suit your needs.
  • How do you want to pay it back - lump sum or monthly payments?
  • How much flexibility do you need? Can you make regular similar payments or do you prefer to pay back more in some months than others?

For more information on bank accounts and loans for young people and students, take a look at our managing your borrowing section.

Protecting yourself from fraud

Fraud and identity theft are common. Credit cards are often a target. It's important that you know how to protect yourself and what to do if you are victim of a fraud.

We've put together a short list of resources you may find useful. This is a cross-section to start you off, but you may want to do some more research. Some of these resources are on other websites, so you need to be aware that the FSA is not responsible for content you find on these websites.

Users can rate articles with between one and five stars; this is not an FSA rating. But we have marked the articles 1-3, based on how detailed they are. If you are looking for a very quick introduction, look for level 1; if you are ready to find out more, go for a 3.

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 FSA Recommended
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Articles

Moneymadeclear - Shopping around
Choosingandusing.com - Credit cards
This simple guide is designed to help you understand how credit cards work; the factors that you should consider when making your choice; and the best ways to use your card for borrowing money.
TheSite.org - Types of credit
A quick overview of the different types of credit available.
Need2know.co.uk - Borrowing money
This is a good place to start looking if you want to find out a bit more about the different ways to borrow money and some of the advantages and disadvantages of each. It offers information about borrowing money for young people and students.
Moneymadeclear – Cards and loans
Cardwatch – protect yourself from fraud
Cardwatch – protect yourself from fraud