With the credit crunch being regularly reported, more and more potential borrowers are seeking credit from money shops.

The number of money shops in the UK jumped up in the last 6 months, with more customers not wanting to take out credit cards, overdrafts or loans from their bank they have seen a rise in the number of people coming through their doors.

Many people are aware banks have tightened their lending criteria and are fearful of rejection or worry with the interest rates being very unstable they will be stuck with a debt they are unable to repay.

The association of British Credit Unions (ABCUL) has also reminded those seeking a quick loan to consider credit unions.

Lucia Webster, Head of membership services at ABCUL comments "Credit unions offer a great alternative to money shops and payday loans for people needing small loans over relatively short periods.

Credit unions charge no more than two per cent on the reducing balance of a loan and many charge just one per cent, which would mean that £1,000 taken out for a month and paid back weekly would accrue just £5.76 in interest at one per cent”

Many experts are quick to remind borrowers to firstly go to their banks and then consider alternative methods if they consider there banks deal insufficient for their needs.