The Hidden Trap: Why Borrowing from Loan Sharks Is a Financial Nightmare

With the continued squeeze on household finances, it's easy to get blown off course when unexpected expenses hit. If you don’t have savings, money curve balls can lead to the need to borrow money.

But one choice could haunt you for years to come - borrowing from illegal money lenders, otherwise known as loan sharks. All lenders in the UK have to be regulated by the Financial Conduct Authority (FCA) and you can check if they are via the public register here. If a money lender isn’t registered then they are a loan shark. 

The High Price of Loan Sharks

When bills pile up and your options are limited, illegal money lenders can seem like a lifeline. They promise quick cash, no questions asked. But behind the facade of easy money lies a sinister reality. Loan sharks operate outside the law, preying on vulnerable people, trapping them in a cycle of debt that can be nearly impossible to escape.

The True Cost Revealed

At first glance, the terms may seem manageable. But hidden fees and exorbitant interest rates quickly spiral out of control. What begins as a small loan can easily balloon into a mountain of debt, leaving borrowers drowning in financial ruin. With no legal protections, victims are at the mercy of ruthless lenders who stop at nothing to collect their dues.

The Consequences Are Real

The repercussions of borrowing from loan sharks extend far beyond the wallet. Stress, anxiety, and fear become constant as debts mount and threats loom. Relationships strain under the weight of financial hardship, and mental health suffers. The toll is immeasurable, impacting every aspect of life.

Get free debt advice

If money is really tight and you are thinking about borrowing money, you might want to get free advice from your local Citizens Advice office or one of the free money advice charities. Use this tool to find sources of local debt advice.

Options for borrowing money

If you still think borrowing some money makes sense, this easy to use tool can help you to review your options. 

In addition, as your employer has partnered with us at Salary Finance we offer salary-deducted loans. We’re regulated by the FCA, and are a company on a mission to help working people get out of debt and into savings.  

Unlike loan sharks, our salary-deducted loans come with built-in safeguards and protections. Repayments are deducted from your salary, ensuring timely payments, without the threat of harassment or intimidation. 

Check your eligibility here