At first glance, you may assume that borrowing money from a loan shark is the best decision you can make. Even if you realize that it’s a risk, you could fall in love with the idea of securing a large amount of money with little to no paperwork.

However, this is never a decision you should make. Doing business with a loan shark can lead you down a dark path, including a situation in which you’re paying more in interest than you ever should.

While you may not like the idea of running up a credit card balance, there are many reasons why this is better than turning to a loan shark:

• It’s safer. Let’s face it: there is nothing safe about borrowing from a loan shark. These people don’t have to follow any rules and regulations, meaning they can do pretty much anything they want in regards to the loan. Not to mention the fact that you could find yourself in a sticky situation should you be unable to pay.
• Just as fast. Depending on your approach, you may be able to apply for and receive a credit card on the same day. This is just as fast as doing business with a loan shark.
• Many benefits. For example, you may qualify for a rewards credit card. This allows you to earn points for every dollar you spend. Also, depending on your credit score and history, your rate may be much lower than one from a loan shark. Once you compare the benefits of the two options, it’ll be easy to see that a credit card has much more to offer.

These are just a few of the many reasons to choose a credit card over a loan shark. As tempted as you may be to give your business to a loan shark, it never makes sense to do so. Chances are that you can find a credit card that offers so many more benefits.

Are you in the habit of relying on loan sharks to get by? Do you continue to take one loan after the next, never knowing how to bring an end to the cycle?

From the outside looking in, it appears easy enough to put an end to this. All you have to do is pay back the money you owe and move on to another form of financing.

However, if you find yourself caught up in the loan shark cycle, you know that escaping is easier said than done.

Here are three simple steps you can take if you want to break free once and for all:

• Set the goal of paying back every last dime that you owe. It may take you longer than you’d like, but this is the first step in finally regaining your freedom. Once you’re all square with your “lender,” you no longer have any financial obligation.
• Find a better way. The biggest reason people continue to turn to loan sharks is the ease of borrowing the money they require. While it may be easy, it’s also costly (and sometimes dangerous). You should find a better way of getting the money you need, such as through a personal loan, credit card, or loan from a family member.
• Realize how much money it’s costing you. Have you ever taken the time to really understand how much it costs to do business with a loan shark? Once you break down the numbers, you may realize that this isn’t something you want to deal with in the future.

So, there you have it. If you do these things, you’ll soon find that you’re in position to break the loan shark cycle. After you break free, you’ll look back and wonder what took you so long to make this move.

Are you in a desperate financial situation? Are you seeking immediate cash that can help reduce your stress and put you on a better path?

If you answered yes to these questions, it’s likely that you’re open to considering all your options.

If desperation sets in, it’s only natural to turn your attention to a loan shark. Even if you know this isn’t the best option, the attraction of fast money may be all it takes for you to give this a try.

As desperate as you may be, here are three reasons why you are better off avoiding a loan shark:

• The interest rate will only make things worse. Even though you can get your hands on the money you need, the rate of interest is sure to cause you more trouble over the long run.
• A loan shark is not easy to work with. For example, if you are unable to make your loan payment, a loan shark is not likely to take kindly to this. You are much better off working closely with a reputable lender, as this gives you options if you find yourself in trouble.
• It’s hard to move on in the future. Once you get into the cycle of borrowing from a loan shark it can be difficult to break the mold in the months and years to come. You could find yourself feeling more trapped than ever, and that’s not a risk you should be willing to take.

You never want to find yourself in a desperate financial situation, but this could happen at some point in the future. If it does, don’t immediately turn your attention to a loan shark. As tempted as you may be, it’s not likely to be the best solution for you.

There are many reasons why loan sharks are able to generate business, time and time again.

At the top of this list is their ability to make their “products and services” appear more appealing than those from the competition, such as traditional banks.

Simply put, many loan sharks are pros at selling themselves. They know what people are looking for, and they play into these emotions as a means of drumming up business.

Here are several of the points that loan sharks attempt to sell:

• Faster close time. Many people who are in the market for a loan begin to shy away because of the time it can take to obtain the money. Loan sharks know this, which is why they offer to provide funding without any delay.
• Fewer documents. Nobody likes to gather information, such as that related to their finances, and complete mounds of paperwork. Loan sharks know this, so they make it simple to receive a loan without any of this getting in the way.
• More money is available if needed. While traditional lenders don’t hand out money on a whim, loan sharks are always willing to lend more as long as it will work out in their favor over the long run. People like to hear this, especially in the business world, as they know they may require more funding at some point down the road.

Loan sharks are among the best salespeople out there. They know what borrowers want to hear, and they make sure they use this information to their advantage.

If you’re in need of a loan, don’t let a smooth talking loan shark draw you in and put you in a difficult position. You need to understand that these lenders aren’t all that they appear to be on the surface.

Do you have any experience with loan sharks? What do you think about their sales tactics? Share your thoughts in the comment section below.