How to deal with a loan shark

In desperate times in the desperate economy we can sometimes find ourselves in desperate situations. Here are three tips you can follow in dealing with debt.

1. Assess the situation

Can you pay? Then do it quickly
Is he a relative? Then see if you can extend the deadline, reduce the interest or get more cash.
Can you disappear? Then use what cash you have, buy a one-way ticket and go live in the UK, South America or any other place you've always thought about.

2. Negotiate

Rather than risk losing the debt, most lenders would appreciate negotiating a compromise. Speak to your loan shark and be willing to be flexible. Perhaps you can do a job for him, steal something or become a drug mule.

3. Hire a hitman

You've already gone to the seedy side of business with your dealings with a loan shark. It's not a large step to hire a killer. Try to get a good price and remember you don't have to pay the whole amount up-front. Pay 50 percent before the job and 50 percent on delivery. Of course make sure you pay the outstanding 50 percent or you'll be back in the same (or worse) situation

Five steps to being debt-free

Why not make this year, the year you become debt-free. Find out how you can do it with Finance Financial's top 5 tips

1. Don't go to University

If you go you'll end up with a massive HECS debt. This is a huge debt that is thousand of dollars per year. You'll also graduate with no actual work experience and most probably a drinking problem.

2. Change your lifestyle

Of course this can be extremely hard to do. Everyone likes to go out for dinner, rather than sit at home eating a tin of baked beans. Alternatively you can pull out your wallet at the end of the meal and exclaim 'oh no, I forgot to get money out'. This way you can let your family and friends pay. You will be able to do this for at least six months before anyone calls you out.

3. Change your habits

It is much cheaper to stay at home and drink. But if you decide to go out with friends drinking, make sure you go out in a big group - at least six or more and make sure that you never buy a round early. By the time it's your turn it's probably midnight, everyone is too drunk and/or it's time to go home because they've got work on tomorrow.

4. Take care with your credit card

Make sure you don't overspend on your credit card. Also try as much as you can to pay back more than than the minimum monthly repayments as this will reduce the interest. The best thing you can do is borrow your dad's card and use that.

5. Prioritise your debts

List all the amounts you owe by interest rate rather than the balance. Put high-interest loans at the top of the list. Now concentrate on paying off the debts at the top first. Of course if you owe money to loan-sharks or gangsters forget everything else we've said and pay those off, broken legs are much, much worse than debt

Welcome to the uncertain world economy

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