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What
You Can Do To Avoid Problems
v If you don't want it, don't get it. If
you have doubts about whether you really
need the loan or service, or whether you can
afford it, don't let yourself get talked into it
at the last minute by a salesperson using
high-pressure tactics. You can always walk
away from a bad deal, even at the last
minute.
v Shop around. You may qualify for a loan
with normal rates from a reputable bank or
credit union. Don't forget that high-cost
lenders are counting on your belief that you
cannot get credit on better terms elsewhere.
Do not let feelings of embarrassment about
your past problems stop you from shopping
around for the best credit terms.
v Compare credit terms. Do not consider
just the monthly payment. Compare the
interest rate by looking at the "annual
percentage rate," as this takes into account
other fees and finance charges added on the
loan. Make sure you know exactly what fees
are being charged for credit and why.
v Read before you sign. If you have
questions, get help from a qualified
professional to review the paperwork. A
lender that will not let you get outside help
should not be trusted.
v If you give a lender a mortgage in a
refinancing deal, remember your
cancellation rights. In home mortgage
refinancings, federal law gives you a right to
cancel for three days after you sign the papers.
Exercise these rights if you feel you signed loan
papers and got a bad deal. Don't let the lender
talk you out of canceling.
v Get help early. If you begin to have
financial problems, or you are thinking of
consolidating unmanageable debts, get help
first from a local nonprofit housing or debt
counseling agency.
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