Despite the fact that “doing business” with a loan shark is risky, many people feel that they have no other option.
If you’re in need of money in a hurry, it’s easy to believe that a loan shark is the right answer. And while this may be true in terms of the timeline, there are entirely too many risks to get involved.
Here are some of the top reasons why borrowers turn to a loan shark:
- They’re in a hurry. As noted above, people who want money fast often turn to a loan shark as opposed to considering other ideas. Even though the money may come faster, you won’t be happy with the arrangement over the long run.
- They were denied a loan by a traditional lender. If this happens, here’s the one thing you need to remember: there are more banks out there. Just because the first lender turns you down doesn’t mean this will hold true across the board.
- They aren’t aware of other options. Let’s assume a bank has turned you down multiple times. Rather than immediately turn your attention to a loan shark, it’s better to look into other options. Why not ask a family member for a loan? Why not apply for a credit card? These ideas are better than getting into a relationship with a loan shark.
All in all, there are many reasons why people think they have to turn to a loan shark. If you find yourself thinking about this, take a step back and look at your other options before you do anything else.
Once you find a more reputable lender, you’ll feel better about what the future will bring.