Loan Sharks
By Ryann Cairns

In the world today, it is not at all unusual to find yourself short of the cash
you need to pay your bills, feed your family and maintain a reasonable
lifestyle.
For every working stiff who runs out of money before they run out of week,
there are unfortunately a number of shady characters willing to loan you all
the money you need at an exorbitant interest rate. You will have to be
careful to avoid these loan sharks when you find yourself in need of quick
cash.

Loan sharks are not just something made up in Hollywood to sell movie
tickets. Unfortunately, loan sharks are all too real and getting involved with
one can wreak havoc on your personal and professional life.

Loan sharks prey on people in financial distress. These people are often
unable to obtain loans through traditional channels like banks and savings
and loans. Often this is because of either bad credit or the nature of the debt
they have incurred. A compulsive gambler may not be able to convince their
local bank loan officer to help pay off their gambling debts.
Likewise, if your credit is poor, you will find it extremely difficult to obtain a loan
at a reasonable interest rate. Any time you borrow money, it is vital to know the
interest rate you will be required to pay. If you interest rate is too high, you may
never be able to pay off your debt.
Your debt may pile up faster than you can pay it off. This is good for the loan
sharks but bad for you. Loan sharks want to keep you in debt.
This makes you dependent on them for ever increasing amounts of money.

Even if you are not a gambling man and not involved in any shady dealings,
you can still fall victim to loan sharks of various stripes. Many so called payday
loan and payday cash advance companies are actually loan sharks in disguise.
They often charge exorbitant rates of interest in exchange for the quick cash they
dispense. Although technically legal, these businesses are considered loan
sharks by a great many of their former and current customers.

No matter what type of loan sharks you get mixed up with, extricating yourself
from their clutches may be one of the biggest challenges you will ever face.
Loan sharks, both the legal kind and the back alley kind, are notorious
for chasing down the money they are owed. While not every loan shark is
of the old leg breaking school, they will find ways to make your life miserable
until you pay them what you owe. They will most likely visit you at your home
or place of work to demand their payments. This tactic is extremely effective for
the loan sharks and highly disconcerting for you. In addition to putting your
personal relationships and your job in jeopardy, these type of tactics violate your
sense of personal freedom and personal space.

The best way to deal with loan sharks is not to get involved with them in the first
place. Anytime you need a loan, make sure you deal only with reputable firms.
Make sure you know with whom you are dealing and that you get a full disclosure
of the interest rate charged by the lender and all associated fees. One of the most
common tricks loan sharks use to keep their customers in debt is to charge
extremely high late payment fees, often as high as 1 to 1.5% per day. You can see
how quickly your loan can spiral out of control at rates like this.

If you’ve already fallen into the clutches of a loan shark, the best way (probably the
only way) to make them go away is to pay your debt in full. You may need to swallow
your pride and borrow the funds you need from your relatives.
It is always hard to admit to financial problems, and many people let their debt get
completely out of control before they seek help. Your family and friends will most likely
be willing to help you out with your financial issues. They will probably be more
understanding than you expect. After all, most people wrestle with financial demons
at some point in their lives.

Once you have banished the financial demons that loan sharks represent, it is vital
that you not repeat your past mistakes.
If you have a problem with gambling, seek help for your addiction. It is important to
get your financial house in order so that you will no longer be easy prey for the loan
sharks that prowl the financial waters.

Ryann Cairns have been writing debt and debt related content for websites for the
last few years. He is currently working on various topics from loans to gambling
for his employer, Strange Logic , a search engine optimization company.
One of the sites he is responsible for operates in the UK debt field called  
UK debt Advice.