Often, we heard of the saying that goes: “prevention is better than cure”. However, as fate would take it, there are times when we simply can’t avoid bad luck. More often than not, we still land ourselves in situations we should have avoided in the first place.
There are people who are still unaware of the dangers when it comes to dealing with illegal moneylenders. Despite the advocacy of local governing bodies condemning the engagement of unlicensed borrowing firms, there are still individuals who are victimised by the allures of these loan sharks, especially those who are considered financially weak.
But what do we really mean by “Loan Sharks”?
Loan sharks are illegal moneylenders that operate their business beyond the applicable law. They are known to be exploiters when it comes to lending money to people who are earning low income, people with bad credit history, minorities and even those who have inadequate financial literacy. They are tagged as such because they prey on these people who are desperately in need of money.
Now that you have the gist of what a loan shark is, what should you further consider to avoid falling into their traps?
Learn from the mistakes of others.
Reflecting on the experiences of others might encourage you not to turn to borrowing money from illegal moneylenders. Hear their grievances and reflect on the horror stories of assaults, threats and violence that they had encountered while dealing with loan sharks. This includes their debt collectors hanging pigs head outside your door, spray painting messages such as ‘O $ P $’ on the corridors of your house, padlock your gates etc. This is on top of the fact that these loan sharks charge exorbitantly greater interests, one more thing you should be cautious is the risk that you’ll soon encounter once they deploy their collectors to solicit your repayments based on the agreed terms.
Look for other alternatives.
Regardless if you are already sinking knee-deep on debts, never ever attempt to resort to these loan sharks just to compensate for your immediate financial mishaps. There are other viable options up in the store for you. A payday loan is an option that you can consider. Unlike loan sharks, payday loans are legit and operate under the prescribed law. Getting loan from Singapore licensed moneylenders such as payday lenders can assure you that you’ll never experience any violent approach or intimidating practices once you are unable to religiously pay your dues on the agreed terms. Moreover, loan sharks will be more likely threaten your family just to make sure that you pay off your debts from them; whereas in payday loan, your debts can more likely be considered cleared after declaring a reasonable bankruptcy.
Learn to get control.
It is entirely up to you if you will let yourself become a helpless bait to these loan sharks. Remember that the choice is in you. Get control of your own borrowing decision and select the decision that can leverage both your personal convenience and safety. Bear in mind that engaging to unlicensed moneylenders is not worth risking your life and the lives of your loved ones. Think carefully and be in full command of the crucial decision you’re going to make.