Many borrowers think they need a loan shark loan ASAP, and the question I have for these borrowers is why? If no-one will give you a loan, then you must deal with that reality first. A loan shark loan will not really make your financial situation any better – on the contrary – an extremely high interest loan, that a shark would approve, will most likely sink you further into personal debt. That is a fact. The other sad fact is that due to the current slack consumer financial regulations in the United States and Canada, what used to be a shady deal set up by loan sharks, is now considered legal personal loan product – “business as usual” for non-traditional lenders.

We have some links of some typical online loan shark web sites I want to discuss later in this post. We will be analyzing these high interest online loan sites to show you how they are designed to take advantage of desperate borrowers who are in a big hurry to get some quick money. However, first we need to look at why we need a loan so quickly, and why we are willing to use a loan shark in the first place.

If I need a loan shark loan as soon as possible, then I have likely sunk myself into a dire financial situation that I created and that I will ultimately have to get myself out of as soon as possible. Whenever you think you are in a desperate situation whereby you need a personal cash loan fast, you have to ask yourself some honest questions;

• how did I get in debt?
• what did I do wrong with my personal finances?
• why did I spend more money each month than I had coming in each month?
• will a loan shark loan help me – really?
• what will happen if I get approved for a loan by a loan shark?
• how can I make sure I’m never desperate for a really fast loan again?

The truth is I need to ask these questions honestly – ASAP!!! I need to learn a lesson much more than I need some quick money deposited into my account – in one hour, 24 hours, one day, overnight, etc. Getting the fast loan is much easier (you may not believe that now) than being honest with yourself regarding your spending habits. One thing for sure not to do is blame yourself and beat yourself up because you have taken on so much debt. It may not be any fault of your own! Your bad financial situation could the result of external conditions that you have absolutely no control over.

Whatever the reason, don’t be too hard on yourself – you are just learning to deal with money now, and you probably won’t make these financial mistakes again. There is nothing wrong with being a borrower who spends allot of money, and there is nothing wrong with being a borrower who has expensive taste – that’s fine. The problem is if you don’t make enough money every month to service your debt load. If you want to buy allot of toys and “live large”, then you need to start earning more. If you want to learn how to reduce your debts, and get your financial house in order, see this post on how to get out of debt.

Regardless of how much money you make every month, and how much money you spend every month, you need to understand the reality of a loan that is approved by a loan shark lender. We will now discuss some of the high interest rates a loan shark lender will charge you if you decide there is no option to but apply for a loan with them. We will discuss borrowing 10K and we will discuss borrowing 5K. These loans will be overnight cash loans you get approved for with no collateral, no security, and a very bad credit rating. Before we start these calculations, and before you apply with a loan shark lender, please take a good look at this picture. This is a perfect illustration of what is happening when you need a loan shark lender ASAP. They will eat you alive, and the lending calculations below will prove that to you.

Loan Shark Loan for 6K – Paid Back in 3 Years

If you borrow 6 thousand dollars from a loan shark and you need it ASAP, you will be paying the highest interest rate on the market. If you have a really bad credit rating, and allot of debt, you will have to have a job of course if you have any hope of getting approved, and you will have to except a very high rate. For this loan shark lender you are paying a 21% interest rate over the period of 3 years, and you will making payments monthly. So now let us do the numbers shall we.

Amount borrowed = 6K dollars
Loan Shark’s rate = 21%
Length of loan = 3 years
Payment freq. = monthly

Payment amounts and schedule – paying back Loan Shark for a 6K Loan
Total Amount to be payed: 7,942.14
Total amount of interest 1,942.14
Payments: 217.59

Take special notice of how much interest is being paid here over the 3 month period. A whopping 2K in interest alone! Very expensive, but a borrower could manage these monthly installment payments if they didn’t have too much other debt to service. We advise against using a loan shark lender, but if you are really desperate, this kind of lending product could be paid back. Next we will look at a riskier loan for you and the loan shark.

Loan Shark Loan for 10K – Paid Back in 5 Years

For this example you are really signing up for crazy amount of interest on the term of the loan. A loan of 10K to be paid back over a five year period, and an interest rate of 30%. This kind of loan would only be approved by a loan shark lender and it would be private. Depending on what State you live in, it may be illegal as well. Let’s do the numbers – payment frequency is one month installments.

Amount borrowed = 10K dollars
Loan Shark’s rate = 30%
Length of loan = 5 years
Payment freq. = monthly

Payment amounts and schedule – paying back Loan Shark for a 10K Loan
Total Amount to be payed: 17,623.57
Total amount of interest 7,623.57
Payments: 289.70

Notice these huge numbers in the interest paid back (over $7500!). This is wildly expensive money to be borrowing, and if you ever do take on this kind of debt, make sure you have an option to make lump sum payments, so you can get out this debt trap. We’re not even discussing the penalty fees that loan sharks will charge you if you are ever late for a payment, or completely miss a payment all together. Next we will look at a very typical loan shark lender’s product, and I use the word “product” with my tongue firmly pushed in my cheek.

Loan Shark Loan for 2K – Paid Back in 2 Years at 18% Interest

A 2 year installment loan for 2K from a loan shark is costly, but you will see why some borrowers go for it anyway. It’s not a loan that will completely eat you alive with interest (inset). As long as you pay back your shark on time and in full. We are borrowing 2K from a loan shark over 2 years at 18% interest. These kind of loan is typically paid back within a few weeks or one month – somewhat like a Payday loan or a Cash Advance product. For the sake of argument, the loan shark is willing to let the borrower to pay the money back in installments over a 24 month period.

Amount borrowed = 2K dollars
Loan Shark’s rate = 18%
Length of loan = 2 years
Payment freq. = monthly

Payment amounts and schedule – paying back Loan Shark for a 2K Loan
Total Amount to be payed: 2,374.93
Total amount of interest 374.93
Payments: 97.60

These payments don’t look too bad I suppose, and for an installment loan, you can easily service the debt if your other debts and responsibilities are not draining your wallet. Still though, I would never let one of these loan sharks in my wallet (well, in my case, a purse)

Penalty for Not Paying Back a Loan Shark – What Do Loan Sharks Look Like These Days, and Days of Old

If you are using the traditional use of the term “Loan Shark” then the consequences of NOT paying back the money borrow could result in harassment, intimidation, threats, physical violence, and even death. Nowadays these traditional loan sharks are only accessible in the under-belly of society, and certainly “you don’t want to go there”. Unfortunately loan sharks these days are not so obvious to identify because the regulations in the consumer lending market have been loosened so much.

Today’s loan sharks wear suits and likely have degrees from “Ivy League Universities” where they have learned how to operate a financial services racket using the current loopholes in the financial regulatory system. These loan sharks have nice suits and slick smiles. They won’t threaten to break your legs, or hurt you in anyway. They will use collection agencies who are professionals when it comes to the dark art of abusing borrowers who have defaulted on their payments. They threaten jail time, and they destroy your credit rating by reporting your delinquency to the major credit bureaus. They are hoping that you will become so frightened you will end up borrowing money from some other loan shark, or a family member to pay them back. This is their hope.

If you ever start getting calls from collection agencies (hired by the loan shark you got your loan from) ALWAYS tell them that before they begin talking to you, that you are recording the conversation. You don’t need to threaten them with anything – just tell them you are recording the call. I first heard about this idea, and how effective it is at the site California Loan Find. You can Google them.

So the good news is that (unless you borrow money from the Mob) you won’t get hurt and killed. You may end up losing your credit rating all together, or extremely damage it. So before you decide to use a loan shark to borrow money from, “ASAP”, think long and hard about all other options first.

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A LOAN CALCULATOR; Enter your loan amount, how many years, the interest rate, and payment frequency (14 for biweekly, 30 for monthly, 7 for weekly. Very helpful so you know exactly what the loan will cost you in interest payments and you will know the total COB (cost of borrowing).

Loan Amount:

Interest:

Years:

Days between payments:
30 for a Month, 7 for Week
and 14 for Bi-Weekly. Easy!