Responsible borrowing
Borrowing creates a financial obligation. Apply only when the repayment plan fits your budget.
Compare the full cost
For the same amount and term, compare APR or its local equivalent, interest, fees, additional services, payment dates and the total repayment.
If repayment becomes difficult
Do not take a new loan merely to hide an existing debt problem. Contact your current lender to discuss available options.
How to compare interest, fees and total repayment
Write down the amount actually paid to you, all scheduled repayments and any mandatory charges not already included. Total outgoings minus money received gives a cost in local currency. Avoid counting a fee twice. Check the annual cost measure in the lender's disclosures; a promotional daily rate is not an annual rate.
APR, charges and total amount payable
Use the APR or other local annual-cost measure published by the lender and review interest, mandatory fees and total repayment separately. Do not convert a daily or promotional rate into an annual figure unless the lender's official disclosures provide that calculation.
Payment dates, early repayment and late payment
Match the payment schedule against your income dates. Before applying, check early-repayment terms, extension charges and what happens if a payment is missed. A larger available limit is not a reason to borrow more. If a payment does not fit your budget, discuss the available options with the provider before committing.