4.6.11 Advance fee loans
- 4.6.1 How to manage your debt
- 4.6.2 Ways to avoid debt problems
- 4.6.3 Tips for managing debt
- 4.6.4 Video: Tips for managing debt
- 4.6.5 Serious debt problems
- 4.6.6 Credit counselling
- 4.6.7 Consolidation loan
- 4.6.8 Other approaches
- 4.6.9 Case study: Fixing debt problems
- 4.6.10 Credit balance insurance
- 4.6.11 Advance fee loans
- 4.6.12 Choosing to invest or pay debt
- 4.6.13 Borrowing to invest
- 4.6.14 Summary of key messages
Suppose you are having debt problems and need money. The phone rings or you receive an email, offering to get you a loan—guaranteed! All you have to do is pay a fee up-front.
Don't fall for such pitches. Most likely it is a scammer trying to steal your money, not lend you money.
- Don't pay up-front. Legitimate lenders don't usually ask for advance fees.
- Don't fall for promises that you'll get a loan regardless of your credit problems. If you have poor credit or haven't established a good credit history yet, it's unlikely that anyone will lend you money without charging large fees.
- Be cautious about emails offering to help you get a loan. Many unsolicited emails are fraudulent.
- Get counselling from a not-for-profit credit counselling organization. (See the section on Credit counselling.)
- Consider all your other options before getting an advance loan.
- Get all the costs and other details before you decide to take out a loan. Shop around for the best loan rates and fees.
- Have proof of what you were promised. Get the agreement in writing.
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