Lincolnshire Credit Union Blog
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How to spot nasty loan shark thugs before they take your money
Date added - 16 Feb 2016
The extra spending we do around the start of the year can be costly for some so you could be forgiven for looking for that little bit extra to get you through the next coming months. According to figures published by the Bank of England, borrowing has surged by 8.3% over the year past year, the sharpest rise since February 2006 - two years before the financial crisis hit.
While obtaining a loan can provide a short term solution the dangers of becoming victim to loan sharks is on the rise. More and more loan sharks are looking for their next victim especially at the beginning of the New Year. Loan sharks will start off being friendly and if you keep your repayments up they will stay that way. However, even if you do, the money you borrow will come at a high price.
The interest on these loans can often be incorrect and could even be changed to a higher percentage without you knowing. You pay far more in interest than you would through any legal borrowing. One woman who borrowed £500 ended up repaying up to a massive £88,000! Some loan sharks have even attempted to charge interest rates as high as 719,000%. Failing to meet your repayments could lead you to being harassed by the loan sharks and you could be pressured into borrowing more money to repay one debt with another.
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