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.