Even if you have some knowledge of how to avoid a predatory lender, you may still find yourself in a bad spot at some point. If this happens, you don’t want to sit back and hope that things work out over time. You need to be proactive in improving your situation and ending this relationship as soon as possible.

Due to the fact that loan sharks do not have a license, they are able to operate outside of the law. By avoiding lending regulations, these “lenders” have the ability to impose large fees and high rates on borrowers.

Here is the best way to remove yourself rom a relationship with a loan shark: pay the money in full, as quickly as possible. Maybe this means taking a cash advance on your credit card. Maybe this means asking family or friends for a loan. Regardless of the approach, nothing changes the fact that you will be in a better situation once the loan shark is out of your life.

There is a lot of stress associated with borrowing from a loan shark. Sure, this person may be willing to lend you the money you are seeking, but the drawbacks far outweigh any perceived benefit.

Tip: once you remove yourself from this relationship, you never want to consider it again. Don’t have any contact with the lender. Instead, if you need to borrow money, opt to deal with a more reliable and reputable lender, such as a bank.

Just because you are mixed up with a loan shark right now does not mean you will be stuck in this position forever. Do whatever it takes to put this in the past. You will feel much better once this person is out of your life.

There are many predatory lenders out there. For example, payday loan scams are more common today than ever before. As somebody looking to borrow money, it is imperative that you focus your time and attention on locating a reputable lender.

If you find yourself doing business with a predatory lender, it won’t be long before you realize you made a mistake. Unfortunately, it is often too late at that point. Instead, you are in too deep to do anything about it.

Rather than risk involvement with a predatory lender, here are three steps you can take:

1. Do your homework. If a deal sounds too good to be true, it probably is. This is particularly true when it comes to lenders. The more research you complete the easier it becomes to pinpoint the wrong lenders and focus on those that have a sound reputation for providing competitive products in a fair environment.
2. Ask questions. Do you have reason to believe a lender is trying to take advantage of you? Rather than go down the wrong path, ask question after question until you feel comfortable with where you stand. If a lender avoids your questions, there is a good chance they have something to hide. It is then time to move onto lenders that are willing to answer your questions, in full detail, to ensure your happiness.
3. Know what is out there and what you are looking for. Many people get mixed up with a predatory lender because they don’t know what they want, what else is out there, or how to compare their options. If you keep an open mind, if you continue to research all your choices, it won’t be long before you are making a confident decision.

By taking these three steps, you will find it much easier to avoid predatory lending practices.

Just because you know how to spot a loan shark doesn’t mean you will keep your distance. Many people are attracted to loans from these lenders as they can get the money they need, in a hurry, without the need to complete a long application that is typically required by a more traditional lender.

Of course, your good idea may soon turn bad once you realize what you have gotten yourself into. For example, you are likely to be paying an ultra-high interest rate. Furthermore, these lenders are not the easiest to get along with.

Rather than seek out a loan from this type of lender, why not consider a more conventional alternative? Just because you say no to a loan shark doesn’t mean you are out of luck. These are the types of alternatives to consider:

1. Bank loan. The application process may be long, but that is no reason to write off this idea. Many people find that borrowing from a reputable lender puts them in a better place. If nothing else, speak with a local bank about your options. You may be surprised at what you find.
2. Credit card. You should never run up a high credit card balance on items you don’t need. However, this is an option to consider if you need money in a hurry for a good reason. Good reasons include everything from car repairs (so you can get to and from work) to medical bills.
3. Friends and family. You don’t want to jeopardize your relationship with a loved one over money. Even so, if you are in a tight spot, there may be somebody in your life who is willing to help you out. Don’t simply request a loan. Instead, let the person know when you will pay it back and that you are willing to tack on interest.

Saying no to a loan shark may be the best financial decision you ever make. There are financial alternatives, such as those detailed above, that make much more sense.

The thought of predatory lending is enough to make most people cringe. While some people fully understand there are “lenders” who will take advantage of them, others have no clue that this is a possibility.

In the past, we have discussed the best ways to protect yourself from a payday loan scam. This time around, we are going to take a look at the steps you can take to pinpoint a payday loan scam, thus allowing you to avoid a bad situation altogether.

1. The fine print. All you have to do is read the fine print to get a better idea of what a lender is trying to accomplish. With most payday loans, you will find a red flag in the fine print, such as notice of a super high interest rate or massive fees.
2. Search online for more information. You aren’t the first person to ever consider a payday loan. You also wouldn’t be the first person to fall prey to a scam. You should always learn more about a lender before you decide to do business with them. The internet makes this possible. If others have had a bad experience, chances are that you will as well.
3. Calculate how much it will cost you. Payday loan companies don’t make money by lending you funds at a reasonable interest rate. Instead, they deal in high rates with large fees. To protect against this, you should always calculate how much the loan will cost you over the long run. This is good practice anytime you borrow money, such as with a credit card or car loan.

If you never consider a payday loan you never have to be concern yourself with being scammed. There are better ways to get the money you need, so make sure you consider the alternatives. You will feel better in the end, knowing that you never came close to doing business with somebody who doesn’t have your best interests in mind.