Responsible Borrowing

Last updated: November 2026

A loan can help with a short-term need, but it is still debt. Challenge Associates is not a lender, so we can’t set your terms. What we can do is help you understand what you’re agreeing to before you accept an offer.

Understand the cost

The annual percentage rate (APR) is the yearly cost of a loan, including interest and lender fees. Look at the total amount you will repay, not just the monthly payment.

Questions to ask the lender before you sign

• What is the APR, and what is the total amount I will repay?
• When is each payment due, and how is it collected?
• What happens if I pay late or miss a payment?
• Can I repay early without a penalty?
• Can the loan be renewed or refinanced, and what would that cost?
• Is the lender licensed in my state?

Is a loan right for you now?

It may make sense for a specific expense when the payment fits your budget. It is usually not a good fit if:

• you need money for regular monthly bills;
• you would need to borrow again to repay this loan;
• you already struggle to pay other debts.

Options to consider

• Ask for more time. Many utilities, landlords and medical offices offer payment plans.
• Credit unions. Some offer small loans at lower rates to members.
• Your employer. Some offer paycheck advances at no cost.
• Local assistance. Dial 211 to find help with rent, utilities and food.
• Nonprofit credit counseling. A counselor can help you build a budget and talk to creditors.

If you can’t repay

Contact your lender before the due date. Asking early gives you more options, such as a payment plan.

Questions or complaints

Questions about a loan go to your lender. To complain about a lender, contact your state financial regulator or the Consumer Financial Protection Bureau at consumerfinance.gov. For questions about our service: