| Iwona Kurecka is an Economist and economic issues Interpreter. Lover of
travels and adventures, as well as of receiving the highest available quality
for the lowest possible price. Stretches money around Europe and passionately
helps others to do the same. Does not like indebtedness and avoids it by
successful control of incomes and outcomes. If you need some professional
advice, she recommends visiting
http://www.debthell.co.uk.
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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 your 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 do 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.
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