Why not use the calculator to see how your income and finances might change
Debt
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Before you borrow
If you are on the brink of borrowing to pay for baby, take a few minutes to think about these points first.
Is borrowing money the only option?
Are you sure you need to buy? Could a lick of paint and some new fabric breathe new life into items you’ve already got? Has someone else got things they could give or lend? Although it’s nice to have new, would second-hand do?
Avoid expensive credit and loans
Some types of borrowing are very costly, for example door-to-door lenders and most store cards. Consider cheaper credit and loans, such as a local credit union or your bank – see the Ways to borrow table.
Plan your repayments
Use our Debt calculator to see how much these could be. Work out in advance how you will pay off the amount you intend to borrow and make sure you budget for the repayments (see Budgeting for the cost of children).
Avoid borrowing for everyday spending
Borrowing to pay for food and household bills is not sustainable. If you can’t see any way to increase your income or cut your spending, get help – see Money worries.
Borrowing to buy a home
The biggest cost of having a baby will be if you buy a bigger home. Shop around for a mortgage using our Comparison tables. To help you budget, consider a fixed-interest loan – for more information see the Mortgages & homes section of our Moneymadeclear website. For details of Sharia-compliant home finance, see www.islamicmortgages.co.uk. For first-time buyers only, there is no stamp duty when you buy a home costing up to £250,000 for two years from 25 March 2010. For other buyers, stamp duty starts at £125,000.