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Fluent · Handout
Borrowing safely: Australia.
A take-home sheet for people at the session. Other countries: United States · United Kingdom · Canada.
Moraph for Good · Fluent
Borrowing safely: Australia
Handout · moraph.org/commons/sessions/fluent/borrowing-safely
The cost of a loan is everything you pay back, not the monthly payment. This sheet has the questions to ask before you borrow and where to get free help where you live.
Three questions for any lender
- What is the yearly rate including fees?
- What is the total I will pay back?
- What happens if I pay late or early?
Warning signs
- Pressure to sign today
- No questions about whether you can afford it
- A fee before you get the loan, which is often a scam
- A lender that wants to keep your ID or bank card
Cheaper options to ask about
- Small loans from credit unions or community lenders
- A payment plan with the company you owe
- Free, not-for-profit debt advice
If you’re struggling
- Contact the lender before you miss a payment
- Complain in writing, and keep copies
- Use the official routes below if it isn’t resolved
In Australia
- Lenders need a credit licence. Businesses that engage in credit activities generally need an Australian credit licence, or authorisation from a licensee. ASIC’s professional registers list licensees, so you can check a lender before you borrow.
- Free guidance from the regulator. ASIC is Australia’s consumer credit regulator. Its free consumer website, Moneysmart, explains the costs of borrowing and steps to take if you fall behind on repayments.
- Complaints. Financial complaints can be taken to the Australian Financial Complaints Authority (AFCA). ASIC doesn’t resolve individual disputes, but you can report misconduct to it.
Official places to check:
- Australian Securities and Investments Commission: www.asic.gov.au/for-finance-professionals/credit-licensees/do-you-need-a-credit-licence
- Australian Securities and Investments Commission: www.asic.gov.au/online-services/search-asic-registers
- Australian Securities and Investments Commission: www.asic.gov.au/about-asic/what-we-do/moneysmart-for-consumers
- Australian Securities and Investments Commission: www.asic.gov.au/about-asic/contact-us/reporting-misconduct-to-asic
General information, not advice about your own situation. Checked 19 October 2026. If an official source says something different, it is right. Free to copy and adapt. moraph.org/commons/sessions/fluent/borrowing-safely