How does loan shark and payday loan thing work?

But the term loan shark has morphed into meaning a very high rate lender to people with poor or no credit or assets. I can understand a person borrowing money for various needs. But to borrow to pay on existing debts just puts you deeper in debt, and only defers the day of reckoning. read more

A 2001 comparison of short-term lending rates charged by the Chicago Outfit organized crime syndicate and payday lenders in California revealed that, depending on when a payday loan was paid back by a borrower (generally 1–14 days), the interest rate charged for a payday loan could be considerably higher than the interest rate of a similar loan made by the organized crime syndicate. read more

A 10 point loan means the borrower owes the amount of the loan plus ten percent interest on the due date. This page may be out of date. Save your draft before refreshing this page. read more