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.

Just because you know how to spot a loan shark doesn’t mean you will keep your distance. Many people are attracted to loans from these lenders as they can get the money they need, in a hurry, without the need to complete a long application that is typically required by a more traditional lender.

Of course, your good idea may soon turn bad once you realize what you have gotten yourself into. For example, you are likely to be paying an ultra-high interest rate. Furthermore, these lenders are not the easiest to get along with.

Rather than seek out a loan from this type of lender, why not consider a more conventional alternative? Just because you say no to a loan shark doesn’t mean you are out of luck. These are the types of alternatives to consider:

1. Bank loan. The application process may be long, but that is no reason to write off this idea. Many people find that borrowing from a reputable lender puts them in a better place. If nothing else, speak with a local bank about your options. You may be surprised at what you find.
2. Credit card. You should never run up a high credit card balance on items you don’t need. However, this is an option to consider if you need money in a hurry for a good reason. Good reasons include everything from car repairs (so you can get to and from work) to medical bills.
3. Friends and family. You don’t want to jeopardize your relationship with a loved one over money. Even so, if you are in a tight spot, there may be somebody in your life who is willing to help you out. Don’t simply request a loan. Instead, let the person know when you will pay it back and that you are willing to tack on interest.

Saying no to a loan shark may be the best financial decision you ever make. There are financial alternatives, such as those detailed above, that make much more sense.