Loan-sharking had been a pretty popular phrase in the past when usury laws had not come into force. Loan-sharking is the action or practice of lending money at unreasonably high rates of interest. Though this practice is still prevailing, yet enactment of usury regulations has put a curb on these lending practices. This is very common in the unorganized sector but regulated money lending institutions have to abide by the government regulations put in force from time to time.
Loan-sharking and usury laws
From the above discussion, it is explicit that loan-sharking is an unavoidable phenomenon but it is fading with the emergence of usury laws. The contemporary loan-sharking depends on the type of loans. Payday loans are an example of contemporary loan-sharking. Payday loans are the lending offered for a very short period, till the next paycheck, and the rate of interest for these loans are, therefore, exceptionally high. This is ridiculous but payday loans are still popular in the contemporary financial scenario.
Payday loans and payday loan relief
Loan-sharking is usually illegal but payday loans are legal except that some states restricting this practice in the interest of borrowers. This concept of loan-sharking, the payday loans, is a quick and easy method to fulfill urgent cash needs but creates a type of trap for the borrowers. It is quite difficult to come out of this trap but every problem has its solution. The disbursement of payday loans gave birth to debt consolidation companies. A Payday loan consolidation company is a company that arranges relief for the dismal payday loan borrowers.
Payday loan consolidation company: An ultimate relief
Debt consolidation is an ultimate relief for the dismayed payday loan borrowers and a Payday loan consolidation company is an entity that arranges this relief for them. In the contemporary world, you may be a victim of loan-sharking but the relief is just one click away. You can search for this company on the internet and resolve your trouble.