before you borrow
I am thinking about getting a loan or buying something on credit and I don't know what to ask.
Before you borrow money or buy something on credit (hire purchase) ask these questions:
How much is the interest rate?
What’s the total amount I will be paying back?
What is being used as security?
How much are the fees?
Do you need to get insurance?
What will happen if I miss a payment?
Compare these answers with another company to see if you can get a better deal.
You have at least three days to cancel the credit but you can't always cancel the purchase.
Find out more about what to think about before you borrow money.
![[link to the Ministry of Business, Innovation, and Employment website].](http://www.consumeraffairs.govt.nz/images/MBIE-white-space.png)
