Repayment plans & loans

Funeral directors often need part payment to cover third party costs, called disbursements, before the funeral can go ahead.  Some require full payment, while others are more flexible, particularly if you are waiting for a government funeral payment.

If you need to pay a deposit and have no other options, you may want to look at affordable loans and credit.

However, if you do not have the funds, you can approach the local council where the person died and ask for a council funeral, also known as a public health funeral.

Be aware that if you take out credit for a funeral, most charities will not reimburse you for this as they tend only to look at money remaining on the bill.

It may be worth entering into a payment plan, if your funeral director offers this option, whilst you are awaiting the result of an application to a charity.

When negotiating a repayment agreement with a funeral director, or considering a loan or credit arrangement, it is important to make sure you can realistically afford the regular payments. If you don’t already have one, start by making a budget.

Has another family member or friend offered to pay or help out with funeral costs, or is there someone you feel comfortable asking?

Be careful who you borrow from as illegal money lenders – also known as loan sharks – can have a devastating impact.

If you think you may have borrowed from an illegal money lender, you can contact the Illegal Money Lending Team.

Banks and Credit Unions offer various types of loans, however they operate under different models which can affect their rates, accessibility and requirements.  Banks are typically for profit, while credit unions are not-for-profit cooperatives owned by their members.

It’s recommended to shop around and compare interest rates and repayment terms from different lenders to find the best option for your circumstances.

Credit Unions can sometimes offer lower interest rates and some flexibility in repayments should your circumstances change.

With any loan you can end up paying back a lot more than you borrowed, so be sure to check what the total cost of the loan will be over the repayment lifetime, and the amount of your regular repayments.

Some funeral directors have a credit licence to enable them to lend money to their clients.  Others work with specialist loan company Funeral Safe to offer credit specifically for funerals.

Speak to your funeral director about the options they have available.  If the funeral is arranged and there is money outstanding on the bill, you may be able to set up a monthly payment plan with the funeral director.

If you already have a plan and are struggling to make repayments, you can contact Step Change for advice. Step Change can also advise you about any other debts you have, such as payday loans, catalogues and banks.