Now we have chased banks down a rabbit hole, we have others pooping into the marketplace. Those quick fix $10k and $20k loans that solve your problem for “oh about a nano second”. These loans look easy and are easy to get, because the lenders have geared the interest so that they can take a haircut on a reasonable percentage of the loans they give out.
They seem to be everywhere. When we have a client that takes one of these loans, they immediately struggle. This is because the loans are repaid daily or from cash flow – and folks their rates would make a bikie gang blush. Our experience is that if you are using these lenders you are becoming a “Borrowing Crack Addict”. We know that’s harsh, but the minute you start…..
While you are quoted weekly, and even monthly rates that look digestible, the real compounded rate is often up to 40%, and payment is sudden, looks good, but will choke you.
And how do you get rid of a loan like this? Why of course – take out another one.
Here’s an idea from the Angels at Your Business Angels / Fresh Numbers… come in and set some tough budgets and ask our team to mentor you through these. You could also ask us about alternatives. Decisions to get a quick fix are often made, however we are here to help with an alternative.
