Before you Borrow


Before you borrow money it is very important to work out if you can afford it. It will take a period of time to repay the loan and during that time your financial circumstances and priorities may change.

Before you borrow you should:
• Do a money plan or budget to assess your ability to pay and work out your priorities?
• Consider whether you need or want it?
• Shop around for the best deal?
• Read the small print. What will it really cost? What risks are you taking?
• Understand if the credit is secured or unsecured and what happens if you can’t pay?
• Get advice

There are a number of really useful tools to help you work out where your money goes
Money Smart
Managing my money:
https://www.moneysmart.gov.au/managing-my-money

Credit, loans and debt. What to consider before you borrow:
https://www.moneysmart.gov.au/media/283408/credit-loans-and-debt.pdf

What to consider?

What type of loan is it? Secured or unsecured?

The Financial Rights Legal Centre has produced a range of useful fact sheets on credit and debt issues:
http://financialrights.org.au

The Office of Fair Trading in NSW has large range of good consumer brochures and fact sheets.

Australian Competition and Consumer Commission has a range of consumer rights fact sheets.

Look for their “Consumers“ link:
http://www.accc.gov.au/content/index.phtml/itemId/815215