There are currently over 20 million people living in financially vulnerable circumstances in the UK. What does that look like for a single parent, a recent prison leaver, or someone facing a health crisis?
We invited eight people to share their experiences of being able to access small sums of responsible, affordable credit from a range of lenders, including community finance organisations and non-bank commercial lenders.
Their stories are a powerful reminder that access to credit isn’t just about money – it’s about financial resilience, personal dignity, and having access to a safety net to smooth over life events when they happen.
For the people in this video, access to a small, affordable loan provided a vital stepping stone during life’s most difficult moments.
For Leigh, it was a lender stepping in after a bereavement and separation left her with nowhere to turn.
For Sarah, a loan helped her furnish a new accessible home after health issues forced her out of work. That stable home environment gave her the foundation to start her own business.
We also heard from Matt, a prison leaver who was shut out by mainstream banks. A credit union loan secured his first month’s rent, keeping him off the streets and giving him the stability he needed to rebuild his life.
Some of the most moving takeaways from these conversations were the impact on people’s mental wellbeing and self-worth.
Kerry, who used a loan for surgery to improve her health, described it as ‘the best money she has ever borrowed.’ For her it was about feeling that she is ‘as good as the next person’.
Similarly, Celena shared the joy of taking her children to Jamaica to connect with their heritage which is something they still talk about today. For her, affordable credit meant she didn’t have to worry about the impact of financial stress on her kids.
Sometimes, credit is simply about keeping the show on the road. Both Henri and Dianne used small loans to fix their cars. For Dianne, that £100 or £200 loan meant she could continue to visit her grandchildren, providing a sense of safety and connection that is priceless.
As Anne-Marie puts it, her credit union is simply a ‘lifeline.’
A key take away from these stories is that when people have access to fair products from providers who listen, they can navigate life’s shocks and seize its opportunities.
We know credit isn’t the right answer for everyone, yet for many people access to a small, short term loan can help smooth incomes, meet unexpected costs and start to build financial resilience. However, there’s a large and growing gap in the provision of affordable, responsible credit for people who are financially vulnerable or excluded from mainstream lending – estimated at £2bn.
We want to see inclusive growth of the consumer credit market that ensures all customers have a good credit option, if appropriate, when they need it. We know this means finding solutions that allow a range of lenders, including community finance, banks and other responsible lenders, to widen access to affordable credit.
Thank you to everyone who took part in this project.
