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What Is A Loan Shark? Is There Really Such As Thing As A Legal Loan Shark?

By Edited Jul 13, 2016 0 0

What Is A Loan Shark?

“I need money to.., I'm drowning in debts, and my credit cards are maxed out! What am I going to do, I NEED MONEY NOW? Where can I find easy money with no credit check?”  These are some of the reasons why you may be thinking of dealing with a loan shark. The saying desperate times calls for desperate measures is very true when it comes with people who are sinking in debt and need financial relief.  So these people will do almost anything to get the debt off of them, even dealing with unlicensed money lenders or loan sharks.   What does that mean?  Unlicensed moneylenders are not regulated by law and do not follow standard business practices, so therefore they are operating illegally.  These people will often lend you money without any credit check, without any collateral or really any formal application process. It is easy to get money from a loan shark, however if you don't pay the money back-the consequences are often unspeakable.  Although loan sharking is illegal, it still happens.


So What Then Is A Legal Loan Shark?

For the simple explanation, first we must know how sharks live. Sharks are species that needs food to live and they fish that are smaller and weaker than them. They steal food that is not theirs and bully those who are defenseless against them. Legal loan sharking operates in a similar fashion.  As we see the shark as predator, so are those who engage in legal loan-sharking or what we sometimes call predatory lending.  Many payday loan companies or emergency cash loan companies will, like the unlicensed loan shark give you money with no credit check or hassle, but instead of breaking your legs if you don't pay-they just kill you with interest.  Many of these emergency cash loan sources charge over 100 to over 1000 percent interest.  They prey on the poor who are in desperate need of cash and milk you for interest payments.  The longer the term, the more interest you pay and the more they bleed you dry.

Who Is usually Prey To These Loan Sharks

Many types of people could be prey to both legal and illegal loan sharks.  The elderly living on limit social security or savings may be prey to legal loan sharks.  College students who need money for school (usually if it sounds too good to be true, then it usually is), people who have lost their jobs and need help to stay above water.  People who are one or two paychecks away from losing their homes. People who need a car in a hurry because they need transportation for school, or work.  There are a number of reasons why people would be desperate enough to even think about dealing with a loan shark.  All of them leaves the person in a state where they sometimes don't think clearly, and make bad decisions.

 How Should I Get The Emergency Cash I Need?

Today you can deal with either type of loan shark, illegal or legal.  But if you want to avoid dealing with loan sharks period, there are things that you can do.

****If it smells like a duck and quacks like a duck, then for god sakes....it's a duck! In other words, trust your instincts.****

  • Deal with lenders who spell out their terms in the form of a contract.  This is to ensure that both parties know what is expected of them.  Both parties know the terms and when the terms are due for payment.  There is nothing left to guess work or no room left for misunderstanding.
  • If you are dealing with payday loans, get a fixed rate payday loan or what is called a ten dollar pay day loan.  This means that for every $100 you borrow, you only pay back $10 in interest, so the interest rate remains stationary and you know exactly how much you have to pay back with no surprises.
  • If you are dealing with payday loans, then get quotes from a few pay day lenders.  Don't just visit one pay day lender.  By having more than one option, you can choose the best rates, and the best terms for you.  Don't be shy and don't feel as if since you are in a bad financial situation that you have to just settle for anything. 
  • You should not borrow money when the interest rate is 1000 percent.  Don't walk...run away from this type of predatory lending.  These people are in business to suck the blood out of the poor community.  They prey on people who are so desperate for money that they will do just about anything, including pay 1000 percent interest.  You will find quite a few of these people when you are looking through source of emergency cash.
  • Know as much as you can about the company you want to have any financial transaction with.  What is their track record with clients, Have they been sued? Have they been reported to the FTC?  Have they been reported to the Attorney General in the state where they do business and most importantly, have they had any class action suits against them.  These are signs that you need to move on and look for other options.

There are people out there that will lend you quick emergency cash with no credit check and with a reasonable interest rate. You just have to take the time to find them.  However, when you rush because you are desperate and anxious, you just may be caught in a loan shark's teeth with no safe way of getting out.

If you need quick cash and you have a car that's paid for or a home then try to get a title loan or a home line of credit.  Usually, since you have collateral, the credit terms on these types of loans are greatly relaxed. You can also look for other ways of making money quickly when you are in desperate need of cash.




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