Being a student in New Zealand can be challenging especially financially. Students are most affected by the skyrocketing costs of living; forcing them to turn to loan sharks as they try to make ends meet
Loan Sharks Student Loans
Loan sharks are fringe lenders who illegally lend people money at very exorbitant rates. In case their money is not repaid as agreed, they use force, threats, and violence to intimidate the debtors to pay the cash lent plus interest.
Caution For Students
The loan amount can rapidly multiply over time as there is no capping on the interest rates charged by loan sharks. Making it difficult for someone to get out of loan shark debt.Currently, loan sharks are targeting desperate students from low-income families, gamblers or those in dire need of cash for upkeep.
ADVANTAGES FOR STUDENTS
The convenience of acquiring quick funds: Loans are easily accessible, and once you make a request, you obtain cash within a short time.
Easy loan process: there is minimal paperwork hence quick turnaround time on loan processing.
The flexibility of fund use: you do not need to explain what you are borrowing cash for, as long as you repay what you owe.
DISADVANTAGES FOR STUDENTS
Exorbitant rates: loan sharks charge very high interest rates on loans as they target desperate students who cannot resist the credit.
They are illegal: loan sharks operate on their terms to which you are forced to abide.
Fees: the penalties charged on late repayments are high which blows the final loan amount out of proportion.
Harassment: loan sharks are known to use force and threats to recover their money.
WHY DO STUDENTS TURN TO LOAN SHARKS FOR LOANS?
To pay school fees: sometimes students can be very irrational about their tuition fees; they might spend it with the hope of repaying it later. However, that plan can backfire, and instead of telling their parents or guardians of their predicament, they turn to loan sharks for a quick fix.
Gambling: students with a “get rich quick” mentality acquire loans from loan sharks to place bets with the hope of making a fortune. Whether they win or not, the loan sharks have to get their money.
Peer pressure: students who try to keep up with the current trends to impress friends can be forced to turn to loan sharks for credit. The problem with such is that they always feel the urge to borrow and without realizing it, they find themselves in serious debt
f you are student you will know how expensive it can be to pay rent. The increase in rent and no source of income can drive students to borrow from loan sharks.
Loan Sharks Loans for Students
- Risk of expulsion: some institutions have zero tolerance for such dealings. A student risks expulsion from school for dealing with loan sharks.
- Physical assault: loan sharks are ruthless, they use threats and physical abuse to recover their money. It can be traumatizing to a student.
- Bad debt: acquiring a loan from loan sharks can leave you in a terrible financial state.
- Depression: harassment by loan sharks can cause an individual to have a mental breakdown.
Tips for Students on Loan Sharks Credit
- Avoid these loans at all cost.
- Seek safe credit facilities from student loans or credible finance institutions.
- Talk to family members in case of hardships.
- Report any harassment by loan sharks to the authorities.
- Live within your means.