Are Loan Sharks The Poorest In The Uk? – › Financial Matters › Credit Cards and Loans › How to Find Loan Sharks (and Emergency Financing Options)
If you’re struggling with debt, or can’t find enough money to pay the bills, it can seem like there are no options left. Especially with a bad credit rating or low income. Without the right financial conditions and stability, it is difficult to get credit from legitimate lenders. Allowing more and more people to fall into the lap of loan sharks and turn to debt.
Are Loan Sharks The Poorest In The Uk?
Loan sharks are a type of illegal, unlicensed money lender. They are aimed at vulnerable people who are in difficult financial situations. Offers loans to people with excessive interest rates and unfair and illegal repayment terms.
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Loan sharks operate outside the law and can be fined or prosecuted if caught. Since they are not authorized or regulated, they make their own rules. In many cases, this means that loan sharks force the borrower and their loved ones to make repayments through extortion, threats and physical violence.
The extremely high interest rates that these lenders give mean that there is a chance that you will never be able to pay it all off. Many loan sharks will encourage you to take out another separate loan to afford repayments on the first one. There is no end to this, and it leads so many people into a spiral of debt.
Unfortunately, loan sharks can be anyone, which makes them hard to spot. You could be working with a loan shark or drinking with one at the pub. However, there are many warning signs to look for to protect yourself and others.
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If you are looking for a loan or financial aid, be wary of anyone who meets any of the criteria below. If you’re not sure, you can always check if a lender is registered with the FCA here.
Loan sharks are also notorious for using threats, intimidation and physical violence. Unfortunately, many do not know this until they are already involved in a loan shark. But regardless of who lent it to you, even if it is an informal loan from someone you know, if someone threatens or harms you, you must immediately tell the police.
Loan shark loans are an illegal money lending practice and must be reported. But the problem for many people is the fear of reporting a loan shark and what will happen to them. Listed below are the contact details for the relevant authorities across the UK. They are professionally trained to handle these situations and everything can be done anonymously.
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Remember that with loan sharks you are not wrong. You did not break the law by borrowing from them. There is also no legal obligation to repay the loan because it is not legal or authorized. The sooner you report a loan shark, the faster you will be free of them.
People who turn to loan sharks often feel like they have no other options, but they do! Loan sharks will only get you into more trouble and should never be used.
Credit unions are for groups of people who have something in common. It could be anything – you all work the same job or live in the same area. It’s always worth checking if you can join a credit union in your area. They tend to offer much lower interest rates and may also offer financial advice.
Loan Sharks Hi Res Stock Photography And Images
These tend to have high APR rates, so even if you don’t want to constantly rely on credit cards for loans, they can be useful in an emergency. Credit cards are ideally useful for short-term loans. But always remember your APR and how it will stack up against compound interest.
All interest on overdrafts is now charged as a single annual percentage rate (APR). In general, depending on the bank, they vary from anywhere between 20 and 40%. This can be a good solution for their short-term cash shortage problems. However, just like with credit cards, the amount you owe adds up quickly if you don’t keep track of it.
Many charities and foundations offer grants that do not have to be repaid to people in financial need. Check out our Weird Grants Available article to find some of the Weird Grants available. Alternatively, visit Turn2Us to see if there are any grants you can apply for here.
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An arrangement loan is extra money on top of your benefits to help pay for certain essentials. This can include anything like paying for basic household items, rent or maternity expenses.
Generally, you are eligible if you are already on benefits and have been for six months or more. The beauty of a budget loan is that you only pay back what you borrow, there is no extra interest.
Many municipalities also operate health support schemes, which are available to people on low incomes who have financial difficulties. Help can be offered in many ways, including small cash loans and grants. What you are entitled to and who you need to contact depends on which part of the UK you live in.
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Check out Finding Finance, a website where you can find responsible and fair lenders when the banks won’t help. Or find even more bank loan options here.
There are places you can turn to if you need help or advice about debt or loans. Turn2Us and StepChange are both excellent charities in the UK, providing constructive help and support on how to deal with debt and what steps you can take to get back on track.
Housing associations, local authorities and municipalities and charities can also often help people who have serious debts. Contact your local, explain your circumstances and find out what help is available to you.
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Disclaimer: He is not a licensed financial advisor and therefore the information contained herein, including opinions, comments, tips or strategies, is for informational, entertainment or educational purposes only. This should not be seen as financial advice. Anyone considering investing should conduct their due diligence.
Sign up to our newsletter to get the best deals and freebies sent straight to your inbox from Jasmine and the team. Loan sharks are criminals who offer a very dangerous way to get quick money or a simple loan.
However, many loan sharks may initially present themselves as friends or guardian angels, and many people are unaware of the dangers of loan sharks. L has always been aware of and experienced loan sharks since childhood, but it wasn’t until they found credit unions that L realized money could have been much easier and much less stressful.
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Growing up, everyone knew the burden, the “Lohman” and his family. A mostly unpleasant bunch to deal with, but for quick cash the ‘lender’ was an available option for those who needed a helping hand with their money, an easy solution to everyday living expenses, or felt they had nowhere else to go. Turn. It was quite popular among the “school mothers”, who had to find a quick solution to the unexpected costs of family life.
The lender was almost a part of everyday life for many on L’s estate. But the “loaner” was the number one priority, even over household bills, because she was afraid of not being able to pay him back, which began to affect her everyday life. In fact, it would not give anyone the opportunity to default – it would stay outside the local post office, preventing people on their way out of collecting their benefits, so he could take his cut of the money first.
Like anyone, L always thought of loans very negatively because of the encounters with “Lohmann” throughout his childhood, and began to feel that no one was really there to help, not without help.
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Fast forward to now, and L is going through a difficult time in life and suffers from poor mental health as a result. L found Manchester South Credit Union through her local church 5 years ago and was able to start saving with us straight away.
L avoids using any form of financing that is not sustainable, manageable or fair, and stays away from “buy now, pay later” schemes. L was one of 6 growing up and she does not want her children to come into contact with the stressful borrowing that L saw her mother go through.
Today, L still saves with us, borrows only when she needs to, recently borrowed from us to get a new car that she pays for through her child support, so she has all the money that L gets to keep.
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“For anyone considering going to a loan shark or already involved in one, there is always an easier way than loan sharks. You don’t need the hassle of loan sharks and the credit union is a safe and friendly solution” – L
I may have been stuck in the same loop their mother was stuck in, borrowing
