Warning to beware of loan sharks in Ireland
With high interest rates, reportedly as much as 118%, consumers should be careful of loan sharks and predatory lenders warns Caroline Madden in The Irish Times.
According to the report lending can “horrendously expensive” for the people who are least able to afford to repay a loan.
A report last year commissioned by Irish League of Credit Unions showed more than 50% of Irish people got into debt in the festive period. This festive over-spending often took as much as 9 months to repay.
At LoansIreland.ie we would recommend consumers budget properly over the whole year, but especially in the months leading up to Christmas. Buying presents early, saving up money and budgeting properly is the solution to avoiding Christmas lending worries.
If you do have to borrow money make sure you choose the right form of lending. A 0% interest on purchases credit card could be a good way to borrow, or an cheap or interest free overdraft if you have one. If you get a personal loan, make sure you closely look at the interest rate and get the best deal possible.
Absolutely avoid loan sharks. Do your research and don’t let aggressive lenders force high interest rates on you.
Many loan companies target areas with leaflets advertising their loans.
Rather than jumping straight in, it might be best to go on the internet and compare loan rates – you might find a better deal elsewhere.