Need cash fast? Want to make sure you get the money you need from a legitimate business instead of loan sharks? Read on to learn more about loan sharks online, how to avoid them, and how to get the cash you need without turning to a shady lender.
The term loan shark may make you think of Hollywood movies, where a back-alley moneylender gives out thousands of dollars – and pays thugs to take back the money they’re owed if they’re not paid back in time.
In reality, things are a little less like they are in show business. Today, the term loan shark is mostly used to refer to moneylenders who operate without being properly licensed or regulated by the relevant financial authorities.
Loan sharks often engage in shady and suspicious activities. For example, a loan shark may refuse to give you paperwork or documents related to your loan, require you to leave items until your debt is paid, such as your mobile phone or driver’s license, and continually add more interest to your loan – so that the debt never goes down.
And while this is rare, in some circumstances, a loan shark could use intimidation or threats of violence to try to make you pay.
Understanding what happens to loans if you die and how debts are handled when they are left to your loved ones can help you prepare for the future.
Harassment of debtors is a serious problem around the world. People who get behind on their bills may be doing the best that they can and still find themselves struggling to get ahead. Some may not even be able to keep up. Either way, that doesn’t give creditors the right to call and harass people, and you have options if you feel that you are being hassled.
People in need of debt relief avoid it because they don’t know what to do or where to start. Others might just be ashamed or not ready to face up to what they must do or how much debt they’ve created. However, the only way to take back control and truly deal with your debt is to do something about it.
Kevin O’Leary, also known as “Mr. Wonderful,” recently shared some advice on CNBC about financial success and the importance of proper budgeting.
Tips For Avoiding Loan Sharks
So, how can you avoid loan sharks? It’s actually quite easy. Here are a few steps you can take:
- Work with vetted, well-known lenders – Don’t ever work with any lender who does not operate out of a proper office, or cannot prove that they are licensed and operating legally. Choose reputable lenders like banks, credit unions, etc.
- Contact regulators about a business’s license or legitimacy – If you think that a lender may be doing business illegally or may not be properly licensed, you can contact local authorities that offer business licenses and regulate lending in your area, and find out if they are legitimate or illegitimate.
- Always get written documentation about your loan – Written loan terms protect both you and your lender if there are any conflicts or problems with the loan, and ensure that the loan is legally enforceable. If your lender does not immediately provide you with written loan terms and a loan contract, do not work with them.
- Never leave collateral – A legitimate lender will never ask for collateral such as your driver’s license, phone, jewelry, passport, or any other such possessions. This is a sure sign of illicit activity.
Know How To Recognize And Avoid Loan Sharks With This Guide!
Hopefully, you’ve learned a little bit more about how to recognize illegitimate lenders and avoid them. Make sure that you only do business with licensed, regulated lenders, and you’ll be able to protect your finances and ensure a better future, both for yourself and your family.
If you’ve been disapproved for a bad credit loan, it can be very frustrating. Where do you turn, while the bills continue piling up? At GoLoans, we want to provide you with options to earn money fast to get those bills paid down.
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Seo Jung-jin is a South Korean entrepreneur and the founder of Celltrion Inc., a South Korean drugmaker that is now working on developing a treatment for COVID-19 coronavirus
Brian Allen has been helping people make smarter financial decisions for over 10 years. As the Editor-in-Chief for Goloans, Brian writes about sage financial advice, “how to” articles, and reviews about lenders and creditors.