 TITLE: What Should I Know Before I Borrow Money? CONTENT: How to Reduce the Risks of Borrowing Money\n------------------------------------------\nNow you know how certain borrowing decisions can harm your credit and endanger your financial well-being. Here's the good news: You can take measures to safely borrow money and avoid these pitfalls, and they can even help improve your credit in the process.\n*   **Check your budget before you borrow.** Before you take out a secured or unsecured loan, carefully review the estimated monthly payments and make sure they fit neatly within your budget to help you avoid becoming overextended.\n*   **Avoid impulse spending.** Credit cards make impulse shopping all too easy, so try to ensure what you put on the card is necessary and can be paid off immediately. This helps keep you accountable and avoid costly interest payments. Plus, keeping your credit card balance (and therefore your credit utilization rate) low can help improve your credit score.\n*   **Pay your bills on time, every time.** When you make on-time payments, you help strengthen your credit, avoid late fees and reduce chances of falling behind on your borrowing obligations. If you tend to forget to pay your bills, set up monthly calendar reminders or turn on autopay to make it a no-brainer.\n*   **Consult the experts.** If you're unsure whether you can safely afford a new loan or line of credit, it's better to get expert advice than guess and be wrong. Consider meeting with a financial advisor or credit counselor before you make any big moves to make sure you're not taking on more than your budget can reasonably handle. END