Safe Borrowing

Last updated: February 4, 2016

Borrow Wisely

Do Your Homework:

Before Signing the Loan Contract: 

Make sure you understand both the document and the requirements of the loan:

  • Be sure to verify:
    • The terms of the loan are clearly disclosed
    • You understand the fine print
    • The lender’s contact information is available if you have questions
  • Be clear:
    • Whether the interest rates change over time
    • The policy and fee for a late payment
    • What happens if you cannot make a payment
    • Any other charges listed in the loan contract and their purpose
    • What happens if you pay the loan back early

Remember:

  • Always shop around and compare offers
  • Don’t take out a loan you can’t afford to repay
  • Do not borrow more than you need
  • Keep up with your payments to avoid accrued interest

This article is published on KansasMoney.gov. Find more information by contacting these state agencies: