Sometimes you hear these horror stories about the negative impact of doing business with a payday loan company. The horror stories surround what happens when you can’t pay your debt. This is when people start thinking of back breaking loan sharks with Mafia connections. With all these crazy stories, who in their right mind would even consider getting a cash advance from a payday loan company?
Unfortunately it also appears that quite a few people who take out online payday advances cannot afford to pay their loans back. It is really scary. Still if you look online, you will see that the federal and state governments require all direct payday loan providers to post information about the borrower rights on their sites. Even with the information visible, concerned people who can’t pay back their cash loans still have thousands of questions about what the payday loan company can do to them.
Hopefully the questions answered in this article will provide reassurance and comfort to those who live in fear of having their lives destroyed by payday loan lenders.
I can’t pay back my cash advance, and I’m not sure what to do.
Well the worst thing you can do is to try and avoid the issue. Lying about not being home and ignoring your mail won’t help the situation at all. The best thing to do is to let the company know that you cannot pay back your cash advance at this time. A reputable payday loan company will work with you to establish a repayment plan that works for you.
As soon as you realize that you will not be able to make a payment, you should contact the lender and explain the situation. Many cash loan providers offer a special, “hardship” repayment program which of course they don’t mention. Take the time to ask about this type of payment alternative because with the economy as crazy as it is, there may be many convenient options which can assist you in taking care of your loan.
Am I going to jail if I cannot repay my payday loan?
What old movie are you watching? People don’t get thrown in jail anymore for not paying bills. No, you’re not going to jail for not being able to pay back money to a payday loan company. That idea is preposterous. Next question!
How does a cash advance, repayment plan work?
When you make a repayment arrangement with the payday loan company, your loan turns into an installment loan. This is much better for you because your interest rate is terminated and your cash loan payment is broken down into smaller payments. In general, each loan is broken into four, separate installment payments. For instance, let’s say that you borrow $1,000. With the finance charges, you might owe a total of $1,167 dollars. For the next four months, you would pay the lender a payment of approximately $291.75 until the total $1,167 is paid in full.
Is there anything I can do to make the payday loan company stop calling me?
Unfortunately there is nothing you can do about this. Legally, since cash loan providers are direct lenders they can call you as often they like. The best way to stop the lender from calling you is to call them first. If they know what is going on, then there is no reason for them to call you.
To avoid problems with a payday loan company, you need to be well-informed about your finances and your rights as a borrower. Always be honest and upfront with the lender, and the lender will work with you to create a good situation for both of you.