Thursday, 22 November 2012

The Emergence of Loan Sharks




I refer to the article "Getting a Grip of the Loan Shark Problems". 

Loan Sharks are one of the many things that is widely loathed by the society nowadays. There are many cases where borrowers suffer constant harassment or physical abuse when the loan sharks come knocking on their doors, realizing that they do not have the money to settle their ugly debt. Presently, taking loans from loan sharks still remains a taboo act that is also strongly discouraged by governments all over the world, with some even taking the initiative to fight against these loan shark criminals. What I find ironic is that people have no choice but to look for the authorities for help when they face trouble from loan shark. The irony lies between the fact that the reason for the emergence of loan sharks is because of the high world unemployment rate and other factors, which is also partly the world government's fault.

To investigate further about the increasing number of loan sharks around streets, one must understand that there are two types of people who make deals with loan sharks; one of them are the financially desperate. Taking a bank loan is no simple task; you must have a stable monthly income and all the other requirements must be met. Banks basically do a background check on you before they hand you a loan, so how is it possible for a broke man, blacklisted as a bankrupt with no stable income, to turn over a new leaf without help from the bank? That is what makes a financially desperate man think that making a deal with the devil is the better alternative, because loan sharks promise instant cash to anyone, anytime.

Another type of people who borrow money from loan sharks are the people facing addiction issues, such as the gambling addicts and junkies. Gambling is not encouraged and even illegal in some countries, but the problem is that the government did not enforce these laws and policies. I think that the only way to get rid of loan sharks is for the government to start by reducing unemployment rate. The governments could also loosen the financial and status requirements to take a loan from the bank, so that people find banks as better a option in search for financial aid. The government should also impose laws where legal gambling dens must screen their players or set a limit in player loss in order to minimize the number of people who gamble their lives away. No matter what the government do, there will always be loan sharks lurking around, feeding on the weak, but the least they can do is suppress them.

Reference: http://www.consumer.org.my/index.php/personal-finance/debt/172-getting-a-grip-of-the-loan-shark-problems

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