When A Loan Becomes A Life Sentence

When Catherine stepped in to help her son manage his finances while he was out of work, she thought things would get easier. After all, she had power of attorney and full legal authority to advocate on his behalf. But instead of finding a path to relief, she found herself navigating a maze of frustration—trying to negotiate with NetCredit, an online lender notorious for its sky-high interest rates.

When trying to reduce her son’s payments, all she got was the runaround.  And unfortunately, she’s not alone.

 

The Cost Of Convenience: Online Loans With A Steep Price

NetCredit, like many online lenders, markets itself as a fast and easy solution for people who may not qualify for traditional loans. But what borrowers often don’t realize is just how much that convenience costs.

In some cases, NetCredit has issued loans with interest rates as high as 155%—a staggering figure that far exceeds the maximums allowed by most credit card companies or even payday lenders. While such rates are legal in many states due to loopholes or lax regulations, they can trap borrowers in long-term debt with no clear way out.

Back in 2020, we spoke to a woman who turned to NetCredit to cover her medical bills. Her loan came with a 60% interest rate. “It scares me,” she said, “because I don’t know how I’m going to keep doing it.” Her payoff schedule stretched years into the future, with no relief in sight.

NetCredit insists its rates and terms are clearly disclosed, and technically, that’s true. But just because something is legal doesn’t mean it’s fair—or that it won’t devastate a family already under financial strain.

 

What You Can Do If You're Stuck

If you or someone you love has taken out a high-interest loan with an online lender like NetCredit, there are steps you can take:

  • Start by contacting the lender directly. It may feel frustrating, but lenders will often work with borrowers—especially if there’s a valid hardship, such as job loss or medical issues. Request a payment plan modification, interest rate reduction, or forbearance option.
  • Document everything. Keep written records of every conversation, email, or letter. If you speak to someone on the phone, jot down their name, the date, and a summary of what was said.
  • File a complaint with Georgia's Department of Banking and Finance. This agency oversees consumer lending practices in the state and can help investigate unfair or deceptive loan terms. Visit dbf.georgia.gov to submit a complaint.
  • Explore credit counseling services. Nonprofits like the National Foundation for Credit Counseling can help you understand your options and may even be able to negotiate with lenders on your behalf.

 

Better Borrowing: Know Your Alternatives

One of the most important takeaways from Catherine’s experience is this: If a loan seems too easy to get, it might come with consequences you can’t afford.

Instead of turning to online lenders that promise fast cash but charge punishing interest, consider more reputable sources:

  • Credit unions often provide personal loans with far lower interest rates and a greater willingness to work with members who have less-than-perfect credit.
  • Local banks may offer financial hardship programs or small personal loans with terms that are far more manageable.
  • Secured loans (backed by a car title or savings account) may also provide lower rates, though they carry different types of risk if you’re unable to repay.

And don’t rule yourself out—many consumers assume they won’t qualify for a traditional loan due to poor credit, but it’s worth checking. You might be surprised by what options are actually available.

 

The Bottom Line: Ask Questions Before Signing Anything

High-interest online loans aren’t just expensive—they can be financially crippling. If you or a family member is considering a loan, take a step back and do the math. Ask:

  • What’s the total amount I’ll repay over the life of the loan?
  • Are there hidden fees or penalties for early payment?
  • What happens if I can’t make a payment?

These questions aren’t just smart—they’re necessary.

 

Consumer finance doesn’t have to be a trap. With knowledge, advocacy, and the right resources, you can protect yourself—and your family—from falling into the same cycle Catherine and her son are still trying to escape.