What happens if can’t pay your payday loan?
Payday loan that is also known as a quick loan, is very popular among middle-class people, as it has got many benefits. Most important ones being, the super-fast processing and loans are available in a very low amount.
You should know when and when not to borrow a quick loan; as a wrong decision can cost you dearly with abnormally high-interest rates on your loan amount and additional charges if your fail to repay your debt on the said time.
With great advantages come strict rules.
Before applying for a quick loan, you must know the consequences, that you may have to face; if you miss the repayment. A payday loan must usually be repaid on upcoming payday.
Of course, in different states, lenders have their own set of rules, according to which, the actions will be taken.
Some of the consequences are discussed below.
1.Your loan amount may be of few hundred Euros; but with high-interest rates, it seems like a massive debt. With this, if you fail to repay, lenders will charge additional charges which may start from around 20% of interest rate per week.Every time your cheque bounces, you will be charged penalties, some lenders charge penalty each day, till the loan is paid.
2.Lenders will wait for the certain time for you to turn up, but if you fail, this may force the lenders to take legal actions.
3. Lenders can also garnish your wages. This can profoundly damage your reputation in your workplace and may also lead to unemployment.
Multiple payday loans are not advisable, as they can only put you in debt trap. Make sure you read the loan contract before you sign.
Please note that the consequences are discussed here,not to scare you. An on time payment will never make you face all these.