When prices go up but wages don’t keep pace, everyday life can quickly become a struggle. From rising energy bills to expensive groceries and rent, many UK households are feeling the pressure of the ongoing cost-of-living crisis.
In times like these, affordable credit can make a big difference, offering a safety net if savings run low or unexpected costs pop up, like an urgent car repair.
However, not all credit is equal. When people turn to high-interest loans or payday lenders, it can lead to even bigger money problems down the line. That’s why having access to fair, affordable credit is more important than ever. It can give you some breathing room without the risk of spiralling debt.
In this blog, we’ll explain why affordable credit matters, who it helps most, and how having the right financial support can ease your burden during tough times.
Rising Everyday Costs Are Forcing More People to Borrow
As the cost of living keeps rising in the UK, more people are finding it hard to cover their everyday expenses. From food and fuel to rent and electricity, prices feel like they just keep going up.
For many households, wages haven’t increased enough to keep up. This gap means more people are turning to credit to get by and many are borrowing money to pay for groceries, bills, or emergency repairs.
It’s no longer just large purchases that require a loan, it's basic needs, too. When credit becomes a lifeline, it shows just how stretched household budgets have become.
Predatory Lending Thrives When Affordable Credit Is Scarce
When affordable credit is difficult to find, people may turn to high-cost or predatory lenders. These lenders often charge extortionately high interest rates and fees, making it too easy for borrowers to fall into a cycle of debt.
What starts as a short-term solution then quickly becomes a long-term problem, with repayments that are hard to manage. This is especially dangerous during a cost-of-living crisis, when many are already struggling.
Without access to safe, affordable credit, people can feel they have no choice but to accept unfair terms, putting their financial stability at even greater risk.
That’s why at Salad we provide fair, direct lender loans to people who need them most. With strict eligibility criteria, we ensure that we only lend to people who can afford to repay the loan. You can find out more here.
Access to Fair Loans Can Prevent Long-Term Debt Cycles
Fair and affordable loans give people a chance to borrow, without falling into long-term debt. These loans usually come with fairer interest rates, clear terms, and manageable repayment plans.
This means borrowers can cover urgent costs, like car repairs or other bills, without being trapped by high fees or growing interest balances. When there’s fair credit access, it helps people stay on track with their finances and avoid relying on one loan after another.
In a cost-of-living crisis, having access to responsible lending is key. It gives people the support they need without pushing them further into financial trouble down the line.
Affordable Credit Supports Financial Resilience and Stability
Affordable credit is essential for helping people stay financially stable, especially during tough times. When unexpected expenses arise, like a broken fridge or an urgent vet bill, having access to low-cost borrowing can stop the situation from spiralling out of control.
It gives people time to manage their money, so they don’t fall behind on other important payments like rent or bills. Over time, this kind of support builds better financial resilience, allowing households to bounce back more easily from setbacks.
In a cost-of-living crisis, affordable credit isn’t just helpful; it’s vital for keeping life on track.
How Lenders and Policymakers Can Bridge the Credit Gap
Lenders play an important part in making credit fair and accessible. Our goal as a responsible lender is to offer fair loans with clear terms, helping people borrow safely when they need it most.
At the same time, policymakers can support these efforts by setting rules that protect borrowers and encourage ethical lending.
By working together, lenders and the government can help bridge the credit gap, ensuring that people aren’t forced to turn to high-cost or unsafe loans just to make ends meet.
For Affordable and Fair Credit Access, Choose Salad
Now that you understand how affordable credit can help you get through financial difficulties, are you in need of fair, affordable credit? If so, we may be able to help.
At Salad, we make affordable loan options available for employed UK residents. We know that the credit score system isn’t always fair. That’s why we use an open-banking-based assessment to evaluate the financial situation of every applicant.
Applying for one of our new loans doesn’t impact your credit score. We use Open Banking in our initial assessment. If successful, we report your loan to the CRA’s (Credit Reference Agencies). Your credit score won’t hold you back from being eligible.
To learn more about our personal loans, click here and to read more blogs like this one, visit our blog page now.
