What are loan sharks?
Loan sharks have been termed as such for a reason – that being they have all the characteristics of the shark – they are predatory, cunning and ruthless – preying on the weak and desperate by offering them instant cash at abusively high interest rates.
To make sure that you don’t become a loan shark’s next victim, you should look out for signs that might be indicative that you are dealing with a loan shark.
Signs that your lenders may be loan sharks:
- They don’t ask you to provide them with identification, proof of income, bank account documents, or copies of your credit record or any other paperwork.
- They offer you instant cash loans, at excessively high interest rates.
- When you don’t pay them back, they use blackmail, intimidation or the threat of violence to pressurise you into making payment, with interest!
- They offer payday loans equal to your month’s salary in advance, then charge large sums of interest at a later stage.
- They charge interest of up to 200% of the amount you loaned, making it almost impossible for you to get out of debt, as each pay cheque only pays off the last, and is not enough to cover the ever increasing interest you owe.
- They make you sign forms giving them access to your bank accounts and then deduct the amount you owe each month plus interest as soon as your salary appears in your account each payday.
- You have had to borrow more money from the loan sharks just to pay off what you owe them, ensnaring you in a vicious cycle where you are continually indebted to them!
The moral of the story is, of course, just don’t do it! Even if you have the slightest suspicion that lenders, who are offering you fast cash loans might be loan sharks, follow your gut and stay away – these are dangerous people and you are putting more than your finances at risk by having dealings with them. We provide you with a safer way to handle your debt and to become debt free.