T his is centrally really important matter to discuss regarding a payday loan, because if you don’t pay it on an arranged time, you will be faced with serious consequences. Here are some scenarios of what could happen.
First thing you must do is to learn your consequences. If by some chance you aren’t able to repay payday loan on time and you don’t find other solution with your lender, your credit score will be damaged. When a client doesn’t repay payday loan on arranged time, the debt is usually sold to a collector agency and they will use some really aggressive solutions in order to collect the loan. They will be calling you at home, work including your family and friend. Since your credit history will be damaged, it will be hard for you to get a loan on some other place. Even after you return the loan, your credit history will have this black spot for seven years.
Some states give the right to a lender to collect the debt through any property you acquire within ten years. Some of the lenders will threat you with jail and criminal actions, but in this case you can’t be sent to jail, unless you took the loan with intention of now planning to repay it. But if in some case you have this kind of threat from lenders company, you should contact your lawyer at once.
Lender can raise fees
Extra fees and interests are to be expected. The longer you prolong the time of repayment the more you will be in debt with lender’s company. They are known to charge really high interest rates and fees for debts. Some states have regulated rules of how much the lenders fees can be high, but unfortunately some doesn’t, they are given the right to lenders company to charge fees as much as they like, example for that is Texas.
But there are means to prevent these situations, which can become extremely dangerous for your budget. You can qualify for extended payment plan. If your payday loan hasn’t come to a charge yet, you may still have the time to repay it. Here is what you must do. The lender company from whom you have borrowed the loan must be a member of “Costumer Service Association of America”. The extended pay of payment must be applied at the pace where you got the money, and before the expiration date of the loan.
You have to be able to repay this loan as soon as possible. This should be your top priority, it will certainly take some financial adjustments, but if you have enough will you will not come into above mentioned situations.