Responsible lending
Short-term credit should solve a problem, not create a new one.
Before you borrow
- Borrow the smallest amount that solves the problem.
- Make sure the payment fits comfortably in your monthly budget.
- Read the APR, fees, and total repayment before signing.
- Don't take a new loan to pay an existing one unless it lowers your total cost.
Warning signs
- You've used a cash advance three or more pay periods in a row.
- Debt payments take more than about 20% of your take-home pay.
- You're paying one lender with money borrowed from another.
Free help
The National Foundation for Credit Counseling connects you with nonprofit credit counselors. The Consumer Financial Protection Bureau offers free tools and accepts complaints about financial companies.