What Happens If You Do Not Pay Your Payday Loan?
Most people obtain money from applying from multiple payday loans without even thinking of the consequences that will come if they do not repay the amount that they have borrowed. In cases of instant payday loans, some borrowers do not alarm themselves when it comes to repaying the amount that they have borrowed since it does not involve collateral. Though these instant loans are not secured they could damage their reputation if they do not settle their payments.
A lot of borrowers dive into instant loans as these loans can be availed directly online. In payday loans, you can instantly receive the money straight to your bank account. One condition is that you should agree that the loan lender will access your checking account in order for him or her to withdraw the amount of money that you are obligated to pay from your bank account when your monthly income arrives there. Remember that you cannot do anything but to pay back the loan lender since this is an automatic process.
There are collection agencies which cooperate with some cash advance lenders. Such agencies may opt to do undesirable actions and so to prevent this kind of instance, you should make sure that you have paid off your payday loan dues without delay.
You may receive letters from the lenders demanding the settlement of your debts. These lenders could possibly take legal actions and can worsen your case. Instead of paying only the amount you have borrowed, you will also be asked for litigation expenses which could add up to the amount of money that you will be paying aside from your loan debt.
Aside from the litigation express, the most awful thing that will happen is that your status will be ruined. Even though you only borrowed a small amount but still it can lead you to become a bad borrower. It might be hard for you to look for lenders who will let you borrow money in the months to come which in short could make your credit card suffer.
A lot of people do not care after they have availed the 1-hour payday loans. The lender will typically get your check and will wait till the deadline for the lender to cash it. You will have a problem if your check will bounce. It may not be that serious but you will be charged by the lender a bounced check fee. You will be informed by the lender that your check bounced and that your debt is already due. A number of lenders are kind enough to permit you to avail for another payday loan in order for you to pay the previous debt. Some also are eager to set a particular provision for you.
Seldom of the lenders are eager to assist you, though. A few lenders may contact you at your home or even in the office to look for you. The most terrible case situation would be if you are sued by the lender for not paying your minor debt. You may also be charged if you issued bad checks. There is also a possibility that you will be blacklisted or be reported to other loan lenders so that you cannot borrow money from other institutions.