Affordability is about being able to meet all your household expenses and debt repayments, and having something left over to meet additional expenses or to save for emergencies.

It is important and responsible to make sure that we don’t lend money to someone if it means that they will struggle financially. Missing loan payments has a negative effect on your credit score and will lead to debt problems. It also means that your chances of borrowing money from us again will be greatly reduced.

You may not have enough income to cover your expenses. One in six people would struggle if their monthly bills in creased by £50; and most people don’t have any savings to fall back on if they are faced with an unexpected expense.

If you take a little time to review your spending and make sure that you can pay all your bills and household expenses, if you have something to spare, you may be able to get into a position where you can afford a loan.

Finally, think about saving. Just saving as much as you can afford will reap benefits when those unexpected expenses happen. Having a history of regular saving with us might also help you get a loan in the future. More about Hoot Savings Accounts here

If you take some time to look at these issues and seek help where you can, you may be able to get your finances back on track. When you are managing better, we may be able to consider a small loan to get you started.

Please make sure that you go to a regulated lender if you are looking for a loan. If you are offered a loan over the phone or face to face with no paperwork, or no loan agreement, they may be illegal lenders charging exorbitant interest rates.

The Budget Planner puts you in control of your household spending and analyses your results to help you take control of your money.

The tool below will analyse how much money you have coming in and what you’re spending it on, it will also help you to identify ways you could better manage your money and plan for the future.

Budget Planner