Thousands of families driven to loan sharks to cover funerals – how to get help

People across the UK are being pushed into dangerous debt because they can’t afford the cost of a loved one’s funeral. New figures show that more than 43,000 people have borrowed from illegal loan sharks to cover funeral or health‑related costs. That’s according to research by FuneralExperts.com and Stop Loan Sharks.

Behind each number is someone grieving, stressed and trying to make decisions fast. With no savings to fall back on, many people end up borrowing from illegal lenders and face huge pressure to pay them back.

Joanne Regan, Director of Operations of FuneralExperts.com says: “No family should be forced into debt simply to say goodbye. Yet every day we hear from people who feel trapped, facing funeral costs they cannot afford, with nowhere to turn.”

“In that moment of grief, many are pushed towards illegal loan sharks or overcharged by providers who should know better.”

Why people are struggling with funeral costs in 2026

The rising costs of funerals and lack of transparency in the sector is a key factor. Research from FuneralExperts.com showed that many families are being charged far more than they need to be for funerals. Some were billed up to £1,550 more for a comparable funeral service compared to the cheapest local provider.

Many people also have no savings to fall back on. Stop Loan Sharks found that 9 in 10 people who borrowed from loan sharks had no savings at all. Those with savings didn’t have enough to cover even a basic funeral.

As a result, people in grief are being pushed into debt and many choose a loan shark because they feel they have nowhere else to turn.

Loan shark debt quickly becomes dangerous

Illegal lenders aren’t regulated, and repayment pressures can be extreme. People who borrowed from loan sharks said they:

• went without food or heating to keep up repayments.
• skipped paying rent or buying essentials to avoid threats from the lender.
• already owed money elsewhere — 6 in 10 had other debts at the same time.

There’s a lot of pressure to give your loved ones the send-off they deserve. But they wouldn’t want you to suffer severe financial hardship just so you can cover their funeral costs. There are ways to get support if you’re struggling without turning to loan sharks.

Where to get help with funeral costs

Below are a few options that can reduce funeral costs or help you cover them.

Government-funded help

You may be able to get:

• Funeral Expenses Payment – helps with essential funeral costs if you’re on certain benefits.
• Bereavement Support Payment – financial help if your spouse or civil partner died; this isn’t means‑tested.
• Public Health Funerals – the council arranges a simple funeral if no one can afford to pay or there is no next of kin willing to arrange it.

Other ways to cut costs or get support

You can also look into:

• Charities – some offer grants based on the person’s job, background or circumstances.
• Funeral directors – some offer payment plans or cheaper options like direct cremation.
• Community or faith groups – may help with low‑cost venues or memorial arrangements.
• Local advice services – Citizens Advice, your council, GP or local charities can point you to grants, benefits and lower‑cost options.

If you’re already struggling with debt, MoneyWellness and other debt management services can help you deal with what you owe. If you’re struggling with loan shark debt, organisations like Stop Loan Sharks can help; you can also use the site to report a loan shark so they can be investigated and prosecuted.

Key takeaways

• Many families are pushed into dangerous debt because they can’t afford funeral costs.
• Most people who borrow from loan sharks have no savings and are already struggling.
• There are safe alternatives — including government help, charity grants and lower‑cost funeral options.
• Debt‑advice services can support anyone already in debt or feeling pressured by lenders.