Here’s a situation that some people who borrow money through payday loans get themselves in to: They’re desperate to get some quick cash so they take the fastest route possible with a payday loan. It’s a quick fix and takes care of their problems initially. The problem is, some people don’t think through what they’re doing very carefully. They simply don’t realize that a payday loan is basically borrowing money from their next check, because they’ll owe all that money back to the lender at their next pay check. Next thing you know, they’ve rolled over three payday loans and owe a much larger amount of money than they originally borrowed, with no way to pay it all back. I know it seems like an easy problem to avoid, but you’d be surprised how often it happens to people. So what happens now? Well if someone can’t pay their payday loans and doesn’t make contact with the company, they’ll eventually be handed off to a collections agency. Most collections agencies will start by sending off some letters demanding that the person pay back the money they owe. Some collections agencies will even go as far as to threaten the debtor with jail if they don’t pay, these are just threats though. Then the person may start receiving phone calls at home and at work, although these can be put to a halt with a cease and desist letter. If the debtor still doesn’t contact the collections agency or loan company about the debt, he or she could find themselves as the defendant in a law suit. A lawsuit could call for wage garnishment or property liens. It’s a situation you shouldn’t ever have to get yourself in to as you’ll have plenty of chances to avoid it.
Tips For Getting Your Payday Loan Paid Back
Obviously, you don’t want a lawsuit taken out against you. It turns in ugly situation in to a disastrous one, but it really should never come to that. When you take out a payday loan you’re already in a situation where you’re short on money. The best thing to do is plan out a budget even before you take out the loan, that way you’ll be sure to have the money to pay it back. If you’re unable to do that for some reason, contact the payday loan company and try to negotiate some sort of payment plan that gives you more time. Some companies may not allow this, but at some point they’re going to just want to get their money back and see it’s in their best interest. You could also consider using a credit card to pay back part of the loan if you have room on it. No matter how you choose to deal with payday loan debt, understand that a collections agency could eventually file a lawsuit against you if you fail to pay, which is probably the last thing you want to have happen. Do yourself a favor and take care of the loan as soon as possible because the consequences only make life more difficult.