Running From the Loan Sharks' Clutches

By: Ajeet Khurana

Escaping from the clutches of inflation hardly seems possible. We are constantly entrapped in a web of bills that shall have to be settled. Rising costs make it difficult to pay off even our regular bills. Thus, we are bound to be in a tough spot when we have to make large investments. This could include making home improvements, buying a car, financing college education, or funding a child's wedding. But we are fortunate that we have access to a huge assortment of loans. It is no longer difficult to get loans that will suit our budget and help us pay off various bills.

However, given the large numbers of loan providers, we can also be caught by loan sharks. As much as possible, we should do business with only the more reputed loan providers. This is not to say that the smaller lenders are loan sharks. In fact, they could offer us some great bargains that are not on offer at the more established banks and lenders. The point that we must take care of is to ensure that we do not get taken in by unlicensed people and organizations. If a loan provider is not well-known, we must take care to see to it that we try to track down customers who will testify that their service is great.

If a person's credit score is good, he will certainly find some great loans. No loan provider will refuse a loan to a person who has a good credit history. However, things are not as easy for a person who has failed to make timely repayments in the past. A bad credit history can really affect a person's future. It can drive a person into the clutches of loan sharks whose interest charges may be 100 percent or even more. Worse than the interest itself are the dirty tactics that are used by these loan sharks to get you to pay up. Borrowers who secure loans from such people and organizations not only find repayment difficult, but on account of the loan they also suffer from far more worry than it is worth.

People with bad credit would do much better if they tried applying for bad credit loans instead. If these are difficult to secure, a person should consider getting a cash advance on his credit card. Often enough, one does not get loans as one lacks familiarity about various deals and market conditions. Consulting a financial advisor or a broker might help the loan-seeker find just the right loan.

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