Borrowing Safely When You Need Money Fast
Urgent need for money is exactly what loan scammers and predatory lenders look for. Safer options to consider first, and the questions to ask any lender before you borrow.
When rent is due or a bill cannot wait, the pressure to borrow quickly is real. That pressure is exactly what scammers and predatory lenders look for. A few minutes of checking can prevent a small problem becoming a big one.
Options to consider first
- Ask the person or company you owe for more time or a payment plan.
- Ask your bank about overdraft or small loan options, which may be cheaper.
- Ask your employer about salary advances through official payroll schemes.
- Check credit unions, cooperatives or community schemes you know.
- Seek free debt advice if you are already struggling.
Questions to ask any lender
- Are you licensed or registered? See checking a lender.
- How much will I receive, and how much will I repay in total? See reading a loan offer.
- What happens if I pay late?
- Why do you need these permissions? See app permissions.
- Do I have to pay anything before receiving the loan? (The right answer is no.) See loan app scams.
If repaying one loan means taking another, stop and seek advice. See debt traps.
For more, see loan app scams and unlicensed lenders.
Frequently asked questions
What should I try before a digital loan?
Talk to the person or company you owe about more time, ask your bank or employer about options, and check community or credit union schemes where available.
How do I know if a loan is affordable?
Compare the total repayment with your income after essential costs. If repaying means borrowing again, it is not affordable.
Where can I get free debt advice?
Many countries have free, independent debt advice services. Search for your country's official or non-profit debt advice.
Sources
- How To Get Out of Debt, US Federal Trade Commission
- What To Know About Payday and Car Title Loans, US Federal Trade Commission
- What To Know About Advance-Fee Loans, US Federal Trade Commission
