While searching for attractive keywords relating to payday loans and debt consolidation, I came across an interesting trend on a topic that is somewhat related. By using the Google keyword tool, I noticed that there were several phrases related to the term “loan shark” that are actually picking up fairly good search volume but have low competition in the search results. Apparently there are a fair number of people out there who are actually searching for loan sharks online because the overall interest rates on payday loans are so high! It’s also possible that many of these people are not able to get approved by any of the conventional sources for these types of loans.
At any rate, I had my trusty writer Eru Chawla draft an article on the topic just to see what she would do with it. She ended up advising people to beware of loan sharks and suggests that credit unions might be a better alternative. Interestingly, she mentions the payday cash advance companies that are notorious for making short term loans at high rates of interest, suggesting that they might be “disguised loan sharks.” This is a fairly popular sentiment, although I have read some articles from other websites and news sources indicating that there are significant differences between payday lenders and loan sharks, and they are not what many people think. Depending on how you look at it, in many ways the loan shark might actually be a better deal!
In the present day world, it is quite common to fall short of cash every now and then. For such people, who are finding it difficult to secure a loan from any reputable credit card companies or banks, there are shady loan providers available. These unauthorized lenders readily provide these people with the required money at a very high interest rate. So, in case you are also looking forward to finding a loan shark for some instant cash, BEWARE!
The best way in which you can deal with these loan sharks is not to deal with them. Helpless people in financial crisis are their prey. Most such people are unable to secure loans from reputable financial institutions due to their bad credit history or the kind of debt they have earned previously.
Obviously, it isn’t easy for any compulsive gambler to procure loans from a bank to pay off his gambling debts. Though this was just an example but there are many such reasons that render people helpless and entice them to begin their quest to find loan sharks.
With loan sharks, it is very likely that your loan amount would pile up a lot faster than it is possible for you to repay it. They usually have terms of loans that work only in their favor. Also, if you fail to make the payments, they may threaten you and pay frequent visits to your home or office, harassing you and thereby invading your comfort.
People who borrow from loan sharks are not at all protected by any kind of terms or conditions and in most cases ultimately have to borrow money from their relatives to break free from the clutches of loan sharks and breathe in some free air.
Though it is hard to admit one’s financial crisis to relatives and friends, unfortunately there is no other option you are left with to save your life from loan sharks. Many times, these loan sharks also pose as payday advance cash and payday loan companies. So, you need to be careful not to fall prey to any of them. These companies are technically legal but the exorbitant interest rates they charge make them no less than loan sharks and they would also not hesitate to resort to notorious ways to recover their loan amount.
Sometimes, the late payment fees of these loan sharks are as high as 1-1.5% daily. So, you can easily imagine how soon your loan amount would spiral beyond your reach and make it impossible for you to pay it on your own.
You must ensure that your money lender is a licensed one to avoid being the next prey to disguised loan sharks. In case, you have fallen prey to any loan shark, it is advisable to approach your area’s Trading Standards office as soon as possible. You may even seek aid from police, if you want.
Most people think that there are no alternatives left to them except loan sharks while they have filed to procure a loan from reputable financial institutions. But they are absolutely wrong!
Credit unions in your locality can be of great help. You just need to check if one has been established in your area or not. These are the financial cooperatives that are owned by members who get together and pool their savings to offer them to other members who are in need and that too at low rates of interest.
These credit unions may also be created by the members of a particular institution. Also known by the name of “People’s Bank”, such money lending facilities are increasing in popularity nowadays. Now that you know the rescue measures, make sure you do not borrow money from loan sharks.