Even though many people are aware of the drawbacks associated with loan sharks, some continue to go down this path when they need money. Are you considering this? Are you wondering what the big deal is? If so, it is probably because you can justify the “benefits” of doing business with a loan shark.

Here is why loan sharks are appealing:

1. Quick access to funds. With a bank loan, this is not always the case. With a loan shark, you can get your hands on the right amount of cash without any delay. For those in a hurry, this is oftentimes enough to push them over the edge.
2. Lack of paperwork. Have you ever completed a loan application? You know that the bank requires quite a bit of paperwork upfront. Furthermore, it seems like they are always asking for another signature. Once again, loan sharks don’t go through all this. For those who despise this type of paperwork, a loan shark will appear to be a breath of fresh air.
3. The money you need. Regardless of how much cash you require, there is a good chance a loan shark can help you out. Traditional lenders don’t always do this, as they take many factors into consideration when deciding how much money you qualify to borrow.
4. Available to give you more cash in the future. This is one of the oldest games in the book, with loan sharks telling people they will be there for them down the road. This may be true, but it doesn’t come for free (or a low cost, for that matter).

These are the reasons why loan sharks are appealing. As a borrower, you need to put all this out of your mind. Instead, it is important to understand that you don’t want a relationship with a loan shark, no matter how beneficial it appears on the surface.

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:

1. 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.
2. 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.
3. 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.

Even if you have some knowledge of how to avoid a predatory lender, you may still find yourself in a bad spot at some point. If this happens, you don’t want to sit back and hope that things work out over time. You need to be proactive in improving your situation and ending this relationship as soon as possible.

Due to the fact that loan sharks do not have a license, they are able to operate outside of the law. By avoiding lending regulations, these “lenders” have the ability to impose large fees and high rates on borrowers.

Here is the best way to remove yourself rom a relationship with a loan shark: pay the money in full, as quickly as possible. Maybe this means taking a cash advance on your credit card. Maybe this means asking family or friends for a loan. Regardless of the approach, nothing changes the fact that you will be in a better situation once the loan shark is out of your life.

There is a lot of stress associated with borrowing from a loan shark. Sure, this person may be willing to lend you the money you are seeking, but the drawbacks far outweigh any perceived benefit.

Tip: once you remove yourself from this relationship, you never want to consider it again. Don’t have any contact with the lender. Instead, if you need to borrow money, opt to deal with a more reliable and reputable lender, such as a bank.

Just because you are mixed up with a loan shark right now does not mean you will be stuck in this position forever. Do whatever it takes to put this in the past. You will feel much better once this person is out of your life.

There are many predatory lenders out there. For example, payday loan scams are more common today than ever before. As somebody looking to borrow money, it is imperative that you focus your time and attention on locating a reputable lender.

If you find yourself doing business with a predatory lender, it won’t be long before you realize you made a mistake. Unfortunately, it is often too late at that point. Instead, you are in too deep to do anything about it.

Rather than risk involvement with a predatory lender, here are three steps you can take:

1. Do your homework. If a deal sounds too good to be true, it probably is. This is particularly true when it comes to lenders. The more research you complete the easier it becomes to pinpoint the wrong lenders and focus on those that have a sound reputation for providing competitive products in a fair environment.
2. Ask questions. Do you have reason to believe a lender is trying to take advantage of you? Rather than go down the wrong path, ask question after question until you feel comfortable with where you stand. If a lender avoids your questions, there is a good chance they have something to hide. It is then time to move onto lenders that are willing to answer your questions, in full detail, to ensure your happiness.
3. Know what is out there and what you are looking for. Many people get mixed up with a predatory lender because they don’t know what they want, what else is out there, or how to compare their options. If you keep an open mind, if you continue to research all your choices, it won’t be long before you are making a confident decision.

By taking these three steps, you will find it much easier to avoid predatory lending practices.