Be wary of loan sharks this January

EDITOR — There is a chance that people may have overspent during the just-ended holidays and there will be need to borrow some money for survival throughout the month.

In desperation, they may be forced to approach a number of moneylenders for reprieve.

Because they want money to survive, they may fall prey to clandestine moneylenders who charge exorbitant interest rates.

There is need for strict regulation of the modalities involved in the borrowing, especially in high-density areas where “chimbadzo” is rife.

Loan sharks are slowly emanating in our society and there is need to nip in the bud such acts before they grow out of hand.

Their operations are associated with below the line activities like unlawful possession of property, violence and threats when they want to deal with defaulters.

Considering the liquidity problems in the country, the nation can brace for reports of violence and extortion now that the opaque money lenders are becoming prevalent in society.

Authorities need to clamp down on these money lenders, it is better for people to make plans with the little they have than get into expensive debt which may affect them and their families.

Shops can also directly offer debt to clients with an option to deduct money through a debit order.

This will shield them from dangerous borrowing, especially in these tough times.

People should have a saving culture and stocking groceries for a month also cuts the need to borrow.

It is not wise to spend beyond what one earns. H Gurure, Via e-mail.