There have been many reports in the news lately of how many people have been getting ripped off, forced to pay exorbitant interest fees, and even worse – killed – because they borrowed money from an unlicensed loan shark.

Licensed Loan Sharks Only

Judging fromthis article, there have been many victims.

But listen up:

YOU DON”T HAVE TO FALL INTO THIS TRAP!

Even though you don’t have the best credit in the world you can still find a loan option that will get you through these tough economical times without risking your life. The fact of the matter is you must deal only with licensed loan sharks. Granted, you will most likely have to pay much higher interest fees, but at least you will not have to risk your life. Besides, most loan providers have to charge these types of fees, because the chances of the borrower paying them back
are very low.

There are many options available to someone in need of money right away. Payday loans are a good example of this. If you need money right away or if it’s an emergency, then I will bet you money that you can get a loan in as little as 2 hours with a payday loan provider. All you need is a checking account, a social security number (if you are in the United States) and a job. if you can provide those things, then you are well on your way to getting the cash you need.

Remember that you need to contact the your local government to find out if the lender you are thinking of working with is licensed or not. We can stres how important it is to stay away from illegal loan sharks that are not licensed by the local authorities. If you live in the United States, then you will need to contact the Comptroller of the Currency Compliance Division in Washington DC, the Office of Thrift Supervision Consumer Affairs Division, or the FDIC. Any of these government agencies in the UNited STates should be able to tell you if the lender you are working with is licensed or not.

If you live in the UK, then you will need to contact the Office of Fair Trading. This is the government agency for overseeing lenders in the UK, and is actively doing everything they can to put a stop to illegal loan sharks. Another agency in the UK that works closely with the OFT (Office of Fair Trading), is a task force called stoploansharks.direct.gov.uk/index.html that is actively trying to stop the illegal lending practice.

If you need a real, true emergency loan, remember that you must get a loan from a licensed lender so that you are protected. Real lenders will be licensed with any of the above agencies in their respective countries and they will also be able to loan you money at lower interest rates. Examples of these types of lenders are payday loan companies, auto title loan companies, bad credit personal loans, and other high risk loans that have high interest rates, but the lender is licensed by a government agency.

As negative as it may sound, loan sharking actually provide a tremendous service if you truly think about it in an intelligent manner.

Loan Sharking Online

Let’s say you are behind in rent two months, it’s your daughter’s birthday, and you have nothing but a few balls of lint in your pocket. It completely sucks to be in that kind of situation.

No one wants to be in that type of circumstance, but it happens, everyday. Especially in this economy. And if you have bad credit, it becomes even harder to get the money you need to take care of the bills you need to pay. That’s where loan sharks come in. And yes, there are loan sharks online and loan sharking online is possible.

Are Loan Sharks Bad?

Most people see loan sharks as being bad, horrible people, but the fact is that as long as you are dealing with a licensed institution, you should be fine. The only downside to obtaining a loan from a obtaining a loan from a loan shark is the high interest you may pay.

But keep in mind that you are getting the money very quickly, sometimes deposited directly into your bank account in as soon as 24 hours. And these types of places don’t even check your credit. Now, that’s perfect!

This is completely possible. You just have to research and find the best loan shark with the best interest rate. Even though the interest rates will be high, you can rest assured that having the money you need to take care of your bills…and turning your dreams into a reality, or, (opening up a business, etc)is more important at the moment than paying high interest fees.

Loan Sharks Are Pretty Much Payday Loan Providers

Whether you go to a local loan shark, or find a loan shark online, just know that its not that difficult. If you search around enough you will find exactly what you need.

Payday loans can be classified as “loan sharks” as they can get you fast money, exactly when you need it. Some people even fill out up to 5 payday loans online applications and get over $15,000. There are stories out there like that. Just beware of the interest you’d have to pay on that! That would be pretty drastic, but there have been stories of people doing that and pocketing over $5,000, but getting charged exuberant interest charges. Believe it!

If you’re considering borrowing money from predatory lenders, then stop right now. Think logically about it for just a moment. Also, think about the reasons for which you need a loan. Whilst you may be in a financial emergency, there are far more safe and secure alternatives to obtaining bad credit loans. As you’ll soon see, a loan shark is not a viable solution. Better alternatives exist.

If Not A Loan Shark, Then What?

When people think of predatory lenders of this nature, they envision gangsters running around breaking debtors’ kneecaps with baseball bats if they fail to pay the debt.  The fact of the matter is this: It’s entirely true. However, there are two kinds of loan sharks: the unlicensed lenders who will beat you and possibly kill you. When you borrow money from this type of illegal lender, then you are at high risk of harming not only yourself, but your family as well. The other type is a licensed lender, however, they will not come after you in a physical sense to break your legs or what not. They will however, charge you exorbitant interest rates per $100 that you borrow. These “financial institutions” are often referred to as payday loan lenders. You see…lenders that work in this fashion do not care about you. They do not care that you have bills to pay…or that you cannot afford groceries…or pay the rent, etc. Once you borrow money from him/her, your life is on the line. He/she will harass you until the the entire amount is paid in full–including interest charged. You’ll also end up in a never ending debt cycle which will become impossible to repay. Why? Because predatory lenders have devised it to be this way. Whilst it may sound contradictory, unlicensed lenders do not want you to repay the loan.

In fact, they want you to pay only the minimum payment. And when you pay the minimum only, you are paying the interest only. Want to know how much interest a loan shark averages? If we are referring to unlicensed lending, then the interest rate is worse. Often times 1,000%+. If it is a payday loan company, then laws in the United States–as well as in the UK–govern the interest rate and repayment of this type loan. In the U.S the average interest rate is around 20% per loan, plus fees, plus rollover fees. For instance–on a $300 loan borrowed for one month–you would payback $60 in interest fees. And if you can’t pay the loan off that same month, it rolls over into the next. In the UK, it’s even worse. There is no maximum interest rate. Lenders can charge whatever they see fit, whilst choosing their own repayment terms..

Think about this for a minute. No amount of money in the world is worth you risking your life over, or becoming trapped in a never ending debt cycle.

With this mind, it’s imperative that you seek out alternative loans that are governed and regulated by your local government. This will, at least, keep you out of harm’s way and perhaps save your life. Whilst the alternative loans which I speak of will not afford you the luxuries of, say, a mortgage. You most likely, will not be able to obtain a traditional loan with rock bottom interest rates either. In fact, let’s be honest with each other here. If you’re searching for loan scavengers (Yes, I just made that up), you’re obviously in a financial pickle. Perhaps you need a loan to pay the rent…to fix your car…to pay off medical bills…or some other legitimate reason. It happens to millions of people a day. The problem lies here: whilst many people can borrow money from a traditional bank at low interest rates with respectable terms, the majority of people in the United States–as well as the UK–have hit their economic or financial rock bottom. If this sounds like you, guess what. Banks don’t care about you. They only care whether your credit score is over a certain threshold–or how much money you’re willing to put in their bank.

So what can a person in a desperate financial situation do, if finding a loan shark is out of the question?

Find out if your credit union offers loans

Borrow the money from your family or close friends

Learn to manage your money better

Sell your gold to a reputable, and local gold dealer

Take on an additional job and save the money you require.

As a last result…

Compare payday loan lenders and find the one with the LOWEST interest rate…and pay it back as soon as possible.