The economy has become unbearable. It has led to desperation and more struggle for survival. If you have enough, there really isn’t a need to borrow, is there? But with the situation of the economy today, with the rise of foodstuffs and standards of living, with bills piling up here and there, the average human would only look for a way out. Something like a financial assistance to ease the bills and handle a bit of expenses. And unfortunately, this is where loan sharks thrive. Because of desperation, you borrow from these illegal moneylenders who offer fast, no-questions-asked loan, but at a hidden cost which can make you fall into depression. They don’t just charge outrageous interest rates, they use threats, intimidation, or even violence to get their money back. They’re illegal, so they operate outside the law, leaving victims with little or no legal protection.

The economy is hard, but turning to loan sharks could make things much more worse. But the question is, how do you know these loan sharks? And what are the safer alternatives to take in the quest to get a little loan to ease financial tension? This article has got you covered. So let’s get right to it.

How Do You Know It’s the Loan Sharks

1. No Contracts

One of their biggest giveaways is that they never give formal agreement. Sometimes, they don’t even provide proper loan documentation. They call, send text messages, or send whatsapp messages saying that they have loan offers for you, while forwarding a link for you to download the app and apply, with no legal proof of what was agreed on, giving them full charge to take any action they want if your loan goes overdue.

2. Immediate Pressure to Borrow

They pressure you to collect their loans immediately before you have a chance to think. A legitimate loan lender will encourage you to read their terms and conditions first before you borrow, to make sure you’re comfortable with it. If any loan lender pressures you to accept their loan offer, you know it’s a loan shark.

READ ALSO: 6 Signs You Might Be Struggling with Depression— And How to Fight it

3. High Interest Rates

A loan shark will lend you 50k and demand 150 in return, sometimes within weeks. Their interest rates are outrageously high and increase due to late payments. And because there’s no contract, you have no chance but to pay.

4. Threats, Harassment, Violence

They first off start with phone calls or text messages, constantly reminding you to repay. Once the deadline elapses and the payment hasn’t been made, they result to threatening, humiliation or physical intimidation. These tactics are made to scare you into paying, no matter how much.

Safe Alternatives to Loan Sharks

Turning to loan Sharks is very risky even if it seems like there isn’t any other option. We write to you today to inform you, that there are safer alternatives to loan Sharks. There are safer places to get money to handle those expenses than basically risking your life, endangering your dignity, and obtaining scars.

Here are some safe alternatives

1.Credit Unions

These are community based, and they offer loans to individuals. They offer loans of lower interests than banks, and should in case something makes you unable to pay back on time, you can easily negotiate with them for more flexible repayment scheme. Don’t worry, they aren’t like loan Sharks who threaten you or trick you to paying back, they can be patient with you till you pay back.

2. Microfinance Banks

These are very reliable with fair interest rates. Banks like Opay, Palmpay, Kuda, Moniepoint, Fair money and the likes of them, are online banking apps, and they offer loans with financial education, proper terms and conditions, flexible repayment plans, and yes, fair interest rates. Because they are legal and legit, they will not inflict fear on their customers. Sometimes it’s hard to differentiate them from loan sharks because loan sharks often mimick their apps. But just know, if it’s not an online bank, it’s a loan shark. Microfinance Banks will not pressure you to take loans from them. Beware!

3. Government Loan Programs

Government loans are in fact one of the safest to borrow from, if you’re seeking a loan. They accept installamental payments, no matter the amount. They come with minimal interest and of course, flexible repayment plans. If you’re seeking to borrow from the government loan program, check the national government website to explore loan opportunities.

4. Side Hustle

You really don’t need to result to loans all the time. Getting loans is okay for urgent financial assistance but how does making some money aside your normal source of income sound? That way you’ll have more money, and zero debts. You can take on online jobs like freelancing, editing, copy writing, etc. Or you could even be productive with your hands, like making things to sell, both edible and not edible, just to make enough money to get you through.

When you’re desperately in need of quick cash, loan sharks might look like gold, but remember that not all that glitters, is actually gold. Don’t be mistaken, they are nothing but red flags. Debts shouldn’t come with threats, seeking financial assistance shouldn’t come with humiliation. These safe alternatives are worth to try when your back is drawn against the wall. Stay safe and stay informed. Don’t be a victim. Avoid Loan Sharks.

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