Finding A Loan Shark
Finding a Loan Shark – Is it a Good Idea?
If you are so far in debt and need money you may be looking for a way and thinking about finding a loan shark. A lot of the finance companies today would be considered loan sharks, although they may not send someone to break your legs when you can’t pay, they can be almost as damaging. These finance companies often charge extremely high interest rates and large penalties when you can’t make your payments.
When you think about finding a loan shark you might want to consider the fact that is something happens so that you cannot repay the loan, you could end up paying hundreds, if not thousands of dollars over the original loan amount. This is what makes these so called finance companies no better the loan sharks of yesterday that did send someone to break your legs.
If you truly need money and cannot find another method of getting it, finding a loan shark really isn’t in your best interest, but if you must there are some things to look for that can help to provide you some protection.
The first thing to look at when you start thinking about finding a loan shark is if this lender is licensed, not all of them are. If they have no regulation that can charge you exuberant interest rates that will quickly ruin you financially. Think about it this way; if you are in such dire need of money right now, chances are you are not well of financially, so how can you pay such high interest rates?
When finding a loan shark, try to bypass the unlicensed lenders and only deal with those that are registered with the Office of Fair Trading. At least this will give them some form of legitimacy.
Finding a loan shark is like looking for trouble if the lender is not legitimate. They use tactics to get you so far into debt that you will be paying them for a long time to come. These loan sharks are aware that you are having problems with money if you are borrowing money in the first place. When you have problems paying, they will encourage you to borrow even more money from them to repay what you already owe. This can quickly turn into a spiral of out of control debt.
The fact is while finding a loan shark you will come across licensed lenders that are not so scrupulous either. Though these lenders do tend to work within the law, they know the loopholes to use to get you into deep debt with them, and when they take you to court you will be responsible to pay all the debt, with a large interest rate. For example, if you need a car loan there are a number of lenders that specialize in making car loans to people with bad credit, but be careful of the terms.
With this type of loan there may be terms that allows them to charge you a higher interest the first time you are late on your payment, with some very large penalties too. There may also be conditions that they can take back your car, and keep charging you interest on the entire amount owing, and not reduce the amount by what they get from your repossessed car. Before you know it you’ll be out of a car, and the $1,500 that you had left owing quickly turns into $6,000.
If you decide that finding a loan shark is what you need to do, be careful about the terms of the loan, and make sure that the lender is licensed.