5 TIPS TO AVOID
PREDATORY LENDING

1) Ignore high pressure sales tactics

• Beware of uninvited visitors - question unsolicited “front door” visits by companies offering you home repair or help with your debts

• If you “must act now” - DON’T

• Guard yourself from “false promises” - “We’ll repair your credit 100% Success!”, “Bad Credit - No Problem”, “Remodel Your Home & Reduce Debt”, “Guaranteed Approval”

• Don’t borrow more money than you need

• Remember if it is too good to be true - it is

2. Take Your Time

• Ask questions - fully understand all the terms of the contracts

• Comparison shop - get quotes from two or three companies, compare the costs and the terms

• Get copies of all documents - review prior to signing

• Do not sign any document unless it is completed - “NO BLANKS”

• Don’t be rushed to close the deal - refuse offers to be driven to their office

3. Calculate the numbers

• Evaluate the benefits of a debt consolidation loan - how much will you save and for how long

• Decide if a refinance is the best solution - consider a second mortgage or an unsecured loan as an alternative

• Compare the old payment to the new loan payment - what is the difference and what are the terms

• Assess the effect of “financed closing costs” - how much equity in your home will you lose

4. Conduct your own investigation.

• Determine if the company is licensed.

5.Check out the company’s reputation and complaint history

• Better Business Bureau www.bbb.org/BBBComplaints/lookup.asp