Are you already familiar with loan sharks? These are individuals or institutions that lend you money and commit usury. They charge high amounts of interest for a loan even to the point of above legal rates.
You’re thinking, “Can I possibly be victimized by loan sharks?” Sad to say, the answer is “Yes!” When you would apply for a personal loan without setting your limits to spending within your means and not minding your loan goals, you will be in danger of being bitten by a loan shark. In addition to this, a possibility of being in debt with loan sharks become greater due to mishandling of assets and not minding life’s many uncertainties like sickness, death of a family member, loss of income or unemployment.
You would think, “No way! There a lot of legal institutions nowadays who offer lower interest rates, why would I take the risk of indebting myself to a loan shark?” People who apply for a loan, whether personal or business loan, without considering their capability of paying the loanable amount fall into this trap. Even if you start to borrow from legal money lenders with fair amount of interest rates but failed to consider your ability to pay your debt, later on once you fail, you would be forced to borrow from money lenders who would offer fast approval, no credit check and no other long procedures to avoid being penalized by your first lender. People who need urgent cash are usually the ones who fall for this bait. These are the people who had been turned down by conventional lenders due to delinquent accounts, missing loan payments and other financial worries.
Once you are unable to pay your debt to loan sharks, they will typically resort to violence-whether physical or psychological, since most loan sharks have no legal hold to recover debt. Other unethical practices are not new to them. Basically, they will pressure and threaten you and even force you to borrow from other money lenders just to pay your debt from them.