The Loan Sharks Are Circling

Published: 24th September 2010
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In this current economic crisis, loan companies are making a lot of money out of people looking to either consolidate or refinance their debt by the way of a loan. They are also often guilty of adding in clauses or hidden charges just to make themselves more money out of their customers.

While loan companies are themselves businesses which need to be profitable, there is an argument to be had about some of their actions and how much responsibility loan providers should accept. Could it ever really be ethically OK to make profit out of the misfortune of others, especially if you helped to construct such misfortune? Obviously the loan companies didn't go out and spend all of their clients money in the first place, but some of them do help to send loan repayment and overall debt sky-rocketing. They do this by charging over-inflated interest rates to their customers or by setting an unrealistic payment schedule. They are also guilty of concealing some of the terms and conditions of the loan in the pages and pages of paper work that accompanies most loan applications. While regular loan companies are dangerous enough to deal with, the emergence of the so-called 'quick' loan companies are another troubling thing to consider for anyone who may be looking for an immediate cash loan.

Be Afraid, Be Very Afraid

The key thing that people should remember when applying for a loan is to be careful, to be very careful. The idea of being careful is even more poignant given the introduction of a different type of loan company in the money sector. There is a new predator on the financial savannah, on first glance it appears approachable and friendly. However, as you get closer and closer to it you begin to see the sharp teeth that it hides, the sort of teeth that could give you a nasty bite. They are a solitary hunter and prey on people who need urgent cash loans. The most common company of this type is known only as 'QuickQuid'.

What They Say And What They Do Are Two Very Different Things

Loan providers like QuickQuid normally offer a deal that seems to good to be true. Nine times out of ten, the deal is to good to be true but it's already too late by the time the customer realises that. Their main target market is anyone who needs an emergency cash loan. It's not too much of a big deal for people who don't need to borrow very much, but the more you borrow, the bigger the bite back will be from the loan company when you start paying them back. QuickQuid offer one of the most ridiculous annual percentage rates around, it is currently set at 2356%. That's so ridiculous that anyone who doesn't notice that figure almost deserves to have all of their money stolen.

Sometimes people need to get a loan to cover their costs, its an inevitable fact of life that money can get a bit tight every so often. But when looking for a loan, people have to make sure that they're getting one that won't either leave them financially crippled or unable to make their repayments. If this becomes the case, that's when people can find themselves in real trouble.

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