Direct lender Cashfloat, part of the Western Circle Group, has shared information encouraging prospective loan applicants dealing with increasing dependency on borrowing to contact charities like StepChange to ensure they’re accessing the help they need.
The short-term loan provider has noted the financial strain many are under during the festive season, especially following a protracted period of soaring living costs, and emphasises that debt management advice is free and accessible.
Advice for Consumers Worried About Debt Repayments in the UK
Anybody with an existing loan or credit product who is concerned they may miss repayments, or who cannot see a way to make minimum repayments on time, is strongly advised to contact their lender in the first instance.
Many can organise temporary repayment holidays or discuss alternative solutions to restructure debt, such as extending the end date of a loan. This is typically more feasible where a consumer has a genuine need, has experienced a financial emergency or otherwise has found themselves in a situation they could not have foreseen.
Examples such as unanticipated redundancy or ill health can have a significant impact on financial well-being, particularly in the run-up to Christmas, when many households have depleted savings or have already taken on debt.
Peter Kimpton, Chief Operating Officer from Cashfloat adds that, ‘While we’d always suggest contacting your lender as a priority, it’s important that we improve education about the range of support services out there. Our customer service teams so often speak with people who are in real need of help, yet haven’t been signposted to the right places or haven’t known that charities and other non-profit organisations exist.
StepChange is just one avenue, where trained advisers offer recommendations on the best ways forward, preventing people from getting into more debt and ensuring they take action and can at last see a light at the end of the tunnel.
We also recommend contacting the Business Debtline for self-employed or business owners in England, Wales or Scotland, and Advice NI in Northern Ireland for anyone struggling with business-related debt.’
Why Responsible Lenders Will Not Lend to Overstretched Applicants
All regulated UK lenders must comply with the rules set by the Financial Conduct Authority (FCA), including the need to assess affordability and run credit checks. These steps are designed to ensure applicants who cannot afford debt, or who are borrowing to repay existing debts, are directed to help, rather than being granted more and more borrowing.
Peter says, ‘Responsibility and fairness are essential aspects of our business, and the Cashfloat teams will never hesitate to recommend debt management support where we cannot lend owing to factors like affordability and preexisting high debt levels. This is all about ensuring we don’t leave applicants looking for any borrowing possible and potentially resorting to unregulated lenders who pose a number of risks.
Spirals of borrowing can cause huge strain on finances, stress levels and vulnerability to unscrupulous illegal lenders, and it’s up to all lenders to ensure we set clear principles, operate with transparency, and don’t extend credit to applicants when we believe this might not be in their best interest.
Anyone thinking about applying for a short-term loan is welcome to use our affordability calculator online. It enables you to enter all the relevant details about your income and outgoings, arriving at an estimate of what you can afford to borrow, how long it may take to repay that amount, and the likelihood of acceptance.
This is a great way to avoid submitting applications and collating more searches on your credit record, as you’ll already be informed in advance whether there’s a good likelihood of the loan being approved or rejected.’
Educational Guides and Money Management Advice From Cashfloat
The direct lender publishes regular articles and guides to improve financial literacy. It aims to assist those who are comparing different loan products, looking at how to create budgets, managing household finances, preparing for high-cost periods such as Christmas, and ensuring they know how to verify that a lender is credible, legitimate, and properly regulated.
In addition to debt support-specific articles, the lender has created a new 2025 Guide to Debt Management, which sets out when and how to get help with debt, how debt management plans work, and a list of the top debt charities in the UK.
About Cashfloat
Cashfloat is one of the UK’s leading direct lenders. We provide online loans for people with all credit scores. Cashfloat is fully authorised and regulated by The Financial Conduct Authority.
