If you live in the UK (or even the United States), then you already know just how bad the economy is: people losing jobs left and right…innocent families being evicted from their homes and flats…all because the global economy is in shambles. Petrol prices are soaring…and UK households are under much financial distress. Many loan sharks in the UK take advantage of these people’s situations and promise to help them out with a loan. The only problem, in most cases, is that this loan has a very high interest rate attached with it. You can even go so far to call it extortionate. With this in mind, here are the main points you need to become aware of when avoiding loan sharks on the internet and beyond.
What Is A Loan Shark?
A loan shark can be defined as the following:
- A person or unlicensed financial company that loans money at extortionate rates
- This person preys on financial victims already in debt
- Not licensed by an government or regulatory institutions
- Will turn to acts of violence if borrower misses payments
- Has the potential to cause emotional and physical harm to borrower
- Often works in organized crime cells to fund their illegal activities
- Often times seem legit and will offer assistance, but very dangerous
If you are in financial distress…and you need a bad credit personal loan, keep this in mind. You can always try and borrow from friends or family first. Just remember to pay them back…because…that would really suck if you didn’t. If that option fails, and you have horrible credit, you can try a small payday loan. But remember…stay away from UK loan sharks!
6 Reasons You Should Never Use Loan Sharks
- You will be charged extortionate interest rates (as high as 1,000%
- You will be intimidated with acts of mental and physical violence if you fail to pay
- Loan sharks often are a part of large organized crime rings that launder money and other illegal activities
- With such high interest rates, you’ll be trapped in debt forever
- Unlicensed lenders operate outside of UK law and other financial regulatory institutions
- You could be putting your family in danger
These are the most important reasons you should not borrow from loan sharks.
Know someone who has borrowed from a loan shark or is thinking about it? Try to prevent it as quickly as possible by reporting the illegal lender. You can do so at the Office of Fair Trading website, or report loan sharks here as well.
Here’s what you should do if you need bad credit loans:
First, try to borrow from friends and family. If that doesn’t work, then attempt to sell any valuable items you may have that you don’t necessarily need right now. This could free up a lot of cash and give you the quid you need to get back on track.
If all else fails, apply to our lender network for bad credit payday loans where you can potentially get a loan very fast.