In todays world, inability to pay the bills, feeding the family, and maintaining a sensible lifestyle due to shortage of cash is not abnormal. Unfortunately, there are numerous shady characters intending to grant loans for people belonging to the above category. The rates of interest are sky rocketing. The borrower needs to follow the dictum Look before you leap in this regard. If he fails to do so, he might end up falling prey to such unscrupulous loan sharks.
Actual definition of loan sharks
From the above definition, one might think of loan sharks to be a Hollywood product. However, he would soon realize that they are not fictitious but real characters, and getting caught up with them could wreak havoc onto his professional and personal life. Loan sharks perform the task of playing on the nerves of people undergoing financial distress. Such people find it impossible to get loans by the traditional means such as loans and savings and banks. This happens due to either poor credit or nature of debt incurred by them.
An irrational gambler might be unable to convince the officer of local bank of helping in paying off his gambling debts. Similarly, if the borrower has a poor credit, he would find it tough to get a loan at sensible rate of interest. Its very much essential to make the interest rate known before going for a loan. If the interest rate is beyond the reach of borrower, he might not clear off his debts any time. Its good on the part of loan sharks but bad on the part of borrowers. The main objective of loan shark is keeping the borrower in debt. This would make the borrower dependent on him (loan shark) for ever rising amount of money.
Even if the borrower does not fall in the category of gambling man or uninvolved in any sort of shady dealings, he could still fall prey to the misleading of loan sharks. Many a times, it so happens that companies dealing with payday loans are in reality loan sharks. They exchange quick loans for inflated interest rates. This cannot be termed as illegal technically, but it is advisable for the customers to be aware of such loan sharks.
Say, the borrower gets mixed up with loan sharks of some type. Extricating himself from their control might prove to be amongst the greatest challenges he would ever face. Both the kinds of loan sharks-legal and back alley are known to chase down money owned by them. Loan sharks dont have the habit of attacking the customers directly. They create obstacles in their path by making their life miserable in some way or the other. For instance- they would visit the customers homes or work places for demanding their payments. This tact has proven to be very effective for loan sharks. However, it has proven to be equally disconcerting for borrowers. This would not only put their job and personal relationships in jeopardy, but also violate their sense of individual freedom and space.
There are only two ways of getting rid of loan sharks. First- staying away from the. Second- paying the debt in full after getting involved. Otherwise, be ready to face the music.