Many times people in despair end up making extremely dangerous decisions for their lives. Debts end up making a big headache for you and your family members. But this is no reason for you to resort to a loan shark, because then the debt snowball will increase much more.
Generally, loan sharks offer easy money without proof of income or contract. But the risk of borrowing with a loan shark is very high and very expensive.
Reasons not to borrow from a loan shark
Abusive Interest: One of the major problems of raising money with loan sharks, especially, is that the interest rates are very high, reaching 40% per month;
Assets as collateral: The loan shark usually borrows assets as collateral and, with a virtually priceless debt, you are very likely to lose it. Jewelry or vehicles are requested, for example. And the value of the good is always much higher than the value borrowed;
No oversight: There is no control over this by any oversight body. That is, you will not be able to resort to the Central Bank or Procons;
There are many cases of physical aggression and death threats
Origin of money: The loan shark is a criminal and his money, obviously, can be of illegal origin. It is common for money to come from theft, corruption or money laundering.
So run away from moneylenders, never pass your assets as debt collateral to anyone.
Therefore, making good financial planning so as not to reach this point of despair and having to use some loan shark is paramount. Get financially organized so you don’t have to get money from others. And most of all, resorting to a loan shark, as your financial situation is likely to get even worse because it will cause you an even bigger problem.