Six things to check before you borrow anything

1. Ask the original biller for a payment plan

This is the single most underused option in personal finance, and it is usually free. Hospitals, dental practices, utilities, mechanics, vets, and landlords all routinely run interest-free arrangements, and none of them advertise it.

Two things matter when you call. Ask specifically for the hardship or payment plan team rather than general billing, because front-line staff often cannot authorise it. And ask before the account goes to collections, since options narrow sharply afterwards. Nonprofit hospitals in particular are required to have written financial assistance policies, and many write off substantial portions of bills for households under income thresholds.

2. Check assistance programmes

Free money exists for exactly the emergencies people borrow for, and most of it goes unclaimed.

• LIHEAP covers heating and cooling arrears and is federally funded, administered by each state.
• 211 is the national referral line. Dial 211 or visit 211.org to find local emergency rent, utility, food, and medical funds.
• State emergency rental assistance still operates in many states, though funding varies.
• Utility hardship funds are run directly by many providers, separate from LIHEAP.

These take a few days rather than a few hours, which is the only real reason people skip them. If your deadline allows it, make the calls.

3. Try a credit union payday alternative loan

Federal credit unions offer PALs: $200 to $2,000, terms of one to six months, APR capped at 28%, and application fees limited to $20. That is cheaper than our pricing and cheaper than nearly everything else available at this size.

The catch is membership, which usually takes a few days and sometimes requires an employer, geographic, or association link. Many credit unions now have broad eligibility. If you can join and wait, do that instead of borrowing from us.

4. Check the payment against your worst month

A useful rule: total monthly debt payments excluding rent or mortgage should stay under about 20% of take-home pay. Above that, one difficult month cascades into the next.

Test the payment against the lowest-income month of your past year, not the average. If your hours vary or you are self-employed, this is where affordability calculations most often fail. The affordability calculator applies both a cash-flow test and the 20% cap and reports the lower figure.

5. Never borrow to repay borrowing

This is the line between a difficult month and a debt spiral. If the money is going to service another loan rather than to an actual expense, a new loan does not fix anything; it adds a payment to a budget that already could not carry one.

We decline these applications, and any lender that approves one is not helping you. The right call is a nonprofit counsellor through the NFCC at nfcc.org, who can negotiate with creditors directly and charges little or nothing.

6. Know the scam pattern before you search

Searching for loans while under time pressure is exactly the state advance-fee scammers target. The pattern is consistent enough to memorise.

• Any fee before funding. Processing, insurance, good-faith deposit, first payment in advance. All the same scam.
• Gift cards, wire transfers, or crypto. No lender is paid this way.
• Guaranteed approval. No legitimate lender can offer it.
• Unsolicited contact. Cold calls, texts, or social media messages offering loans.
• No verifiable NMLS ID. Search any lender's ID at nmlsconsumeraccess.org before sending documents.

More detail, including how to verify a lender in two minutes, is on our security page.

If you have done all six and still need to borrow

Then borrowing is a reasonable decision, and the remaining job is to borrow the smallest amount over the shortest term you can comfortably service. Check your rate with a soft inquiry, read the total repayment rather than just the monthly payment, and make sure you know the date the loan ends before you sign.