It can be said that he plans to cheat the loan sharks. However, one entity that he didn't try to cheat is the Four Directions Sect.
He could have ignored the sect, not registered, not been saddled with the awakening debt, and gone directly into the city to kill people. But he didn't do that for one main reason.
That reason is that he will be considered an external enemy attacking the sect if he doesn't register with the sect when he starts attacking the city.
As a member of the sect, the sect has a go-to move that they can use when he starts killing the people of the sect or destroying buildings and other valuables of the sect. This go-to move is to fine him and saddle him with horrendous debt.
As long as the sect can pile huge generational debt on him, the sect won't care about what he is doing. They won't care until one month later, when it is time to pay the first installment of the interest.
