Payday Loan Default – What Will Happen?

September 19th, 2013 by admin

Nobody wants to stuck in a situation like this, it appears as different things hit you one by one that you don’t even realize that you reach to a point when you need to borrow money from a cash advance company. Payday loans are ideal for those unexpected expenses that you are not ready for in between paydays. The whole concept of the payday loan is simply to repay it as soon as you get your paycheck. What happens in situation when you actually do not have sufficient funds to do that?

cash_advance_loansAlthough you may be want to let the credit card payments fall, what will happen when you are behind on your rent already? When you pay off your payday loan, there won’t be sufficient funds left to meet your daily expenses. This actually depends upon the amount of money that you wanted to borrow from the company of cash advance. The best thing is to borrow small amount that you urgently needed. Now what will happen?

What is going to happen if you cannot or do not repay your cash advance loans? You will face its consequences and you must be aware about it. May be you are quite fine with this thought because you don’t know what exactly you will be facing. At first you will notice how much interest you need to pay on your payday loan. In this way the amount that you owe can either be doubled or tripled which means you will be in great trouble.

If money arrangement is not possible for you and the additional interest fees is an additional burden to pay the payday loan company, imagine yourself in court then. As many people try to misuse borrowed money or take undue advantage of it, the payday loan companies are usually not so forgiving to those who are not willing to repay their money on time, no matter if there is a legal reason behind it.

Court can ask you to pay the money that you owe to the payday loan company and you also require paying the cost of attorney and court that the loan company acquired in order to collect the funds from you. If you cannot make this bulk payment, a legal claim or lien is placed on your property. Even the checking accounts, the personal property, and real estate can be seized till their money is recovered. There are some states, where they have a right to garnish your wages.

Payday loan company get their money back so the best thing is to try and pay it back on time, whether you borrow it from a family member or a friend. Obviously no one would like to be in such a situation.