There is nothing better than the feeling of removing yourself from a relationship with a loan shark. This will feel like the weight of the world has been lifted from your shoulders. It may not solve all your financial problems, but it will definitely put you in a better position overall.
While many people understand the benefits of avoiding a relationship with a loan shark, others have a hard time grasping this concept. Instead, they see benefits, as the “lender” is able to provide them with the money they need, without delay.
Before you travel too far down this path, here are three reasons why you don’t want a relationship with a loan shark:
- High rate of interest. Let’s face it: this is where loan sharks come out on top. They are able to charge borrowers a high rate of interest, much higher than the industry average, because they are not regulated. As a result, the borrower comes out holding the short end of the stick.
- No way of knowing what the future holds. With a traditional lender, you know the finer details of your loan. You also know that this is not going to change (for the most part). Can the same be said about a loan shark? Definitely not. They have the option to change the terms and conditions of your loan, which is something they often do. If you fight against this, it could make things worse for you.
- Potentially dangerous. If you default on a bank loan, for example, you could find yourself in financial trouble. This could mean losing a particular asset. With a loan shark, your situation is much more serious. While not always the case, some so-called lenders threaten borrowers with physical violence. Is that a risk you want to take?
The three reasons above prove that you don’t want a relationship with a loan shark. Be sure to avoid this at all costs, as there are more reputable lenders out there.