Today the Office of Fair Trading has come out and said that people should not be using loan sharks this Christmas in order to raise the funds for more presents because it just isn’t worth it. Now correct me I’m wrong, but I would have thought this was fairly obvious.
When I think of loan sharks it conjures up imagine of night-club bouncer type men who would sooner break your legs than show come compassion. So if I was a little short of cash this Christmas, I wouldn’t be running to find my local loan shark and offering up my knee caps as collateral.
Apparently there could be more than a quarter of a million people are risk from loan sharks, and the recession and bad financial situations are only making it worse.
Now the main thing to remember is that loan sharks are in fact illegal. They hand out money without a license, and therefore decide to claim back ridiculous interest in order to make their money back. Also if you don’t have enough money to pay for Christmas, what makes you think that you’ll ever be able to get enough money to pay back the interest?
People have given reports of loan sharks threatening them and breaking into their houses because they want their money back. However, it has been said that loan sharks pile on so much interest because they want to make sure that you can never settle your debt, and then you’ll be making weekly payments to them forever. Sweet deal for them, but not so good for you.
So basically, the suggestion is that if you don’t have enough money to stretch over Christmas then you may just have to deal with it, because while a lot of presents and food etc would be nice, it is important that people stay safe and make sure they don’t put themselves in a bad situation.