Topic 5 of 10

Borrowing Wisely and Avoiding Predatory Loans

See the real price of a loan, recognize payday, title, rent-to-own, and other high-cost products, find safer options, and get a fair deal when you finance a car.

Lessons: 2 About 36 min in total

Borrowing money is not always bad. A fair loan can help you buy a car to get to work or handle an emergency. But some loans cost many times more than they seem to. These lessons show you how to find the true price of any loan, what the laws in DC, Maryland, and Virginia say, how to buy a car without paying for extras you do not need, and where to find cheaper, safer help.

Builds on Money Smart for Adults

  • Module 7: Borrowing Basics
  • Module 8: Managing Debt (Section 7, Understanding High Cost Debt)
  • Module 10: Building Your Financial Future (Section 3, Cars as Assets)

Start the first lesson

Lessons in this topic

  1. The Real Price of a Loan: High-Cost Traps and Safer Options

    Turn loan fees into an APR, see what payday, title, rent-to-own, and 'buy now, pay later' deals really cost, learn the rules in DC, Maryland, and Virginia, and find cheaper options.

    About 18 min Quiz questions: 6

  2. Buying a Car: Get a Fair Loan and Avoid Dealer Traps

    Budget for the full cost of a car, get pre-approved for a loan, recognize dealer traps such as long loans, add-ons, and yo-yo financing, and think carefully before you cosign.

    About 18 min Quiz questions: 5