Financial literacy is key—understanding loan terms before borrowing can prevent a lot of stress down the line
The problem with borrowers is they do that in times of need and they don't give that much time in reviewing what's in it in the contract.
That's why they become surprise with surcharges, hidden charges and the interest rates that they agree to pay after taking the loan. This is a big problem for them when they don't due diligence.
Whilst for the side of the loaners or loan sharks, they take advantage of those moments because they know borrowers who are in need of money are desperate to get it.