Today, lenders do not exercise responsible lending. As a result, borrowers are being exploited in one or another. It is worth noting that responsible lending plays an important role in regulating the loan market to make sure that consumers or borrowers are informed of the terms as well as conditions attached to all kinds of loans. This way, consumers will be protected from any form of coercive tactics on the side of the lender.
Loan Sharks Online
A good online loan lender should always aim at improving the standard of living of their clients by offering them loans with reasonable interest rates and flexible repayment options. However, this is not the case all the time. For instance, some lending institutions such as banks or even credit unions charge high-interest rates leading to a higher number of defaults, property loss, and more.
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There are several online lenders to choose from, but not all of them offer the best deals. One of the options you should avoid is loan sharks, online lenders. This may sound a little bit shocking, but it is the truth. Here are the key reasons why you should not use loan sharks, online lenders, even if you are experiencing a financial crisis:
In most cases, a loan shark is well-known for offering loans at higher interest rates. In addition, loan sharks can use threats, blackmails, and more in the process of repayment. Most sharks love working from home, and their loan comes with high-interest rates.
No Detailed Paperwork
When looking for a lender, make sure that everything is crystal clear, including paperwork. However, sharks offer little or no paperwork at all. This implies that you will enter into a deal without knowing the policies or terms of service. Unfortunately, online sharks can force their clients who are unable to repay their outstanding loans into illegal businesses such as prostitution and drug dealings. If such happens to you, the best thing to do is to call the police immediately.
When you borrow money from a loan shark, you are subjected to high-interest rates far much more than any legal borrowing. In addition, you stand a higher chance of being harassed if you fail to repay the loan within the stipulated period.
Things to Help You Identify Loan Sharks
Here are the things that can enable you to recognize online sharks in the lending sector: they provide you with less paperwork, charge high-interest rates, do not disclose important information like policies, interest rates, and repayment options, increase the outstanding loan amount without your consent, confiscate your property or even do worse than that.
Better Options to Acquire Money
This is one of the top ways to get a loan. Such kinds of loans are interest-free and have no time limit. When you choose to borrow from someone, you should pay back the lender as soon as possible, or else this can make the relationship sour. However, this option may not be effective, especially if you are in need of a large sum of money.
Dispose of the Assets That You Do Not Really Require
Many people may find this option to be offending, but it can be the simplest way to get money. If you need money fast, you should think of the property that is in your possession and can be sold with a lot of ease. At first, people tend to think that they do not have anything to dispose of. However, there are several things you can sell in your home, such as TV, furniture, appliances, car and more. Note that you can survive without this stuff and can acquire a large amount of cash within hours by selling them online.
Borrow From Your 401(K)
It may be the easiest way to get money, but you should resist borrowing from your 401(k). This is because borrowing from your saving can affect your potential returns. Additionally, it can be a risk to borrow from a retirement account due to the fact that when you leave your company for another job, you will be required to repay the money you borrowed instantly. Therefore, anyone can borrow from their retirement account but should beware of the consequences of doing so.
Other options include using your property as collateral security and getting a personal loan from a reputable site such as personalloans.com and more.