Even though many people are aware of the drawbacks associated with loan sharks, some continue to go down this path when they need money. Are you considering this? Are you wondering what the big deal is? If so, it is probably because you can justify the “benefits” of doing business with a loan shark.
Here is why loan sharks are appealing:
- Quick access to funds. With a bank loan, this is not always the case. With a loan shark, you can get your hands on the right amount of cash without any delay. For those in a hurry, this is oftentimes enough to push them over the edge.
- Lack of paperwork. Have you ever completed a loan application? You know that the bank requires quite a bit of paperwork upfront. Furthermore, it seems like they are always asking for another signature. Once again, loan sharks don’t go through all this. For those who despise this type of paperwork, a loan shark will appear to be a breath of fresh air.
- The money you need. Regardless of how much cash you require, there is a good chance a loan shark can help you out. Traditional lenders don’t always do this, as they take many factors into consideration when deciding how much money you qualify to borrow.
- Available to give you more cash in the future. This is one of the oldest games in the book, with loan sharks telling people they will be there for them down the road. This may be true, but it doesn’t come for free (or a low cost, for that matter).
These are the reasons why loan sharks are appealing. As a borrower, you need to put all this out of your mind. Instead, it is important to understand that you don’t want a relationship with a loan shark, no matter how beneficial it appears on the surface.