Supermarket wants to help struggling families through the cost-of-living crisis.

With a cost-of-living crisis in full swing, we're all tightening our belts anyway we can.

Whether that's by cutting down on our food shop, or eating out less, we'll take all the help we can get financially.

Which is why this may be just what you need ...

Well-known supermarket chain, Iceland, is trying to help customers where it can, launching a new 'buy now, pay later' scheme.

But the brilliant part about this is that its loans are interest-free, meaning you get a lump sum now to pay for food shopping at a later date.

It's hoped it will help struggling families through tight patches and allow them to buy food if they haven't yet been paid – without the hefty interest usually applied to loan schemes.

Run alongside Fair for You – a charity helping to alleviate poverty through better credit solutions for lower income family households – the scheme will allow customers to take out small loans on a pre-loaded credit card to cover their food shop.

How will it work?

Shoppers can apply for a Food Club Card here through the Fair for You website , which will be initially pre-loaded with an amount between £25 and £75.

Some shoppers will be able to apply for further credit, of up to £100 in total, for some Iceland shops.

No customer will be able to owe more than £100 in one go, so it's hoped this will help stop people borrowing above their means.

Customers will pay back £10 a week, but will be able to choose the day they make repayments and be able to overpay if they wish.

Although the loans will be subject to availability, shoppers will be able to check if they're eligible online and, once they apply, they'll receive a decision during business hours.

People claiming benefits can apply for the cards, though they'll have to prove they have a stable, regular income and a bank account they can make their repayments from.

Successful applicants will get a preloaded card within five to seven working days, and customers can use this to pay for items in stores or online.

The news comes at a particularly tough time for families, who are facing rising energy costs, food bills and struggling to feed their children over the summer holidays, in some cases.

The new initiative will offer an affordable, flexible credit solution to combat food poverty and comes after a successful trial of 5,000 participants set in Huddersfield and Rhyl, north Wales.

Simon Dukes, CEO of Fair for You, said:

'We’re very proud that, by working with Iceland, we can help families put food on plates without having to resort to food banks – an option which is not always available to all who might need it.

'We’re proud of the impact we’re having and this global recognition. We’re also very grateful to Iceland and those investors who have made the scheme a success so far, and hope to continue its rollout.'

Richard Walker, Iceland Foods Managing Director, added:

'More than ever, people are struggling to purchase much needed everyday items during this relentless cost of living crisis, and fresh thinking is required by business and government to find workable solutions.

'With Fair for You, we have rolled out Iceland Food Club to offer our customers even more support, helping them manage essential spending on their own terms.

'To those striving to worry less about how they will afford essential goods, this ethical credit scheme delivers real help when most needed and I believe it will make a valuable contribution to breaking the cycle of food poverty in this country.'

So far, more than half (57%) of participants said they were less stressed because of the scheme, while 95% of people involved had found it helpful.

71% of people using the 'buy now, pay later' scheme said they were less likely to fall behind on rent, council tax and other bills as a result of the loan, while 92% of people said they'd decreased or stopped using food banks.

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