Many people have heard the term loan shark, but not everyone fully understands just what that term means. If this is you, don’t feel bad. There is far more to a traditional loan shark than you would see in one of those old movies depicting Las Vegas nearly a century ago. Loan sharking is a lot more common than most people think, simply because it typically hides in the shadows, out of the spotlight. However, there are still some important aspects to loan sharks that everyone should keep in mind.
Understanding What a Loan Shark Is
A loan shark is simply a lender of money with very specific repayment and interest requirements. Unfortunately, most of the requirements from a loan shark to the person that is borrowing the money are illegal in some way. This can mean the loan shark is charging an outrageous interest rate, or this can mean that there is some sort of threat made to the borrower in the circumstance that the loan is not repaid in full, precisely when expected.
What Makes a Loan Shark Dangerous?
The biggest thing that makes a loan shark so dangerous is the fact that he or she knows that you are in desperate need of money immediately. If you had any other alternative, they know you would use it before turning to them, so they use this to their advantage. They know they can charge outrageous interest and that you’ll accept, simply because you have no choice but to accept it. This means that even if they threaten to take away your home, vehicle, or other important asset, they know you will comply.
Where Would One Look for a Loan Shark?
Contrary to popular belief, loan sharks are not simply hanging out in the back room of a dark bar or at the end of an eerie alleyway. Loans sharks can be anywhere, and are often everywhere. They can be found in nearly every country around the world and in most counties across the United States. Plus, you can even find lenders that would qualify under the definition of a ‘loan shark’ online, preying on those who do not know that their practices are illegal. Some companies will literally show up one day, display their terms and conditions, and hand out loans that same day, and then disappear the very next day. Often, these companies go by numerous different names to try and steer clear of any fines they may have accrued or law enforcement agencies that could be close to catching them.
Where Else Can You Turn for Help?
If you are in dire need of help, and you believe you have nowhere else to turn, consider these simple options. First, you may want to look into a Payday loan. While these are not the best in terms of interest, they are both legal and helpful when in a pinch. Second, try talking to friends and family. It’s a lot easier to ask for help with money before something disastrous happens, rather than asking for a handout after the dust settles. Finally, try selling off items you no longer need or use and see if that money will cover your current financial burden. Sometimes just being proactive can be enough to help get you motivated to change your financial situation, which can help you alleviate the need to ever turn to a loan shark. If you can take control over your financial situation before it becomes dire, you can often avoid being in a situation where you have to comply with contemptible terms or conditions for any type of loan.