Loan sharks are skilled at making their “deal” look like the best of the best. For this reason, many people continue to move down this path when they need funds, such as to keep their business afloat.

However, once you realize the real cost of a deal with a loan shark, you will come to find that this is never a good idea.

Let’s take a look at three reasons why you should avoid these types of “lenders” at all costs:

  • High interest rate. Sure, you can get the money you need without much (or any) paperwork, but in the long run this will cost you. Here’s why: loan sharks charge a crazy high interest rate as a means of making money in a hurry.
  • With a traditional lender, you know that you’re working with a legitimate operation. If you have questions, they’ll have answers. If you run into trouble paying back your loan, they may be able to help. None of this can be said of a loan shark. Instead, the stress associated with this type of transaction will always be hanging over your head.
  • You never know what’s next. Loan sharks are unpredictable. Once again, this is due to the fact that they are not regulated. For this reason, they can do pretty much anything they want – even if it’s illegal. When you never know what’s coming next, it can be a challenge to live your life.

So, there you have it. These are a few of the points that should help you better understand the real cost of a deal with a loan shark.

Do you have experience borrowing from a loan shark in the past? How did things play out? What advice do you have for others who may be thinking about this? Leave your comments and personal advice in the comment section below.

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