Shylocking is the illegal process of lending money at ridiculous rates. While you may think that this is an old-world operation, it’s still evident in the modern world. Shylockers are now wearing suits and ties, pretending to be your best friends. They prey upon your need for immediate cash, and they slap you with tear-jerking interest. With the right preparation, it’s possible to avoid these shylockers.
Here are the tactics you can apply to avoid modern shylockers:
It’s a no-brainer that you should do your own research before taking out any loan. Without proper research, you’ll be exposed to lenders who will rip you off through unreasonable rates. In your research, make sure that you track down borrower reviews because they are often unbiased. You can check out these reviews in Facebook and other social media sites. Lending clubs are also great areas where you can borrow money while minimizing risk.
Create a Financial Plan
A responsible borrower is the one who has a detailed financial plan. In this plan, you should include your expenses and income sources. It’s important to see a fine balance between the two points so you can repay your monthly loan obligations easily. It will only take few minutes to create a plan, as long as you’re concise and determined. Many borrowers default on their loans because they failed to make financial plans. Yet, even if they have plans, these borrowers failed to develop the habits to implement the plan. While you can’t use the plan to slap a shylocker away, it will give you a shot of getting out of debt.
Be Objective in Taking Suggestions
If you don’t have the time to research, you can always ask your friends and family. There’s a fair chance that the probably have a lender suggestion. Once you received a suggestion, you should take this with a grain of salt. Not all suggestions are good, so you have to dig deep. If you’re not careful, you may end up dealing with a cruel shylocker. Do your best to compare one suggestion with another so you can come up with a list of the most reliable lenders.
While modern shylockers can’t be weeded out from society entirely, you can still control the game. Applying the mentioned tactics will help you avoid these shylockers, but you still need to be vigilant. Don’t trust a money lender easily – an agenda may be hidden beneath the lender’s appealing marketing practices.