No one likes dealing with debt that they feel is insurmountable. That’s why over 12 million people turn to payday loans every year as a way to pay down their other debts or pay an unexpected expense. If you find yourself in this situation, know that there are ways to dig yourself out of this hole. This article will show you ways that you can attack this debt and get out from under it once and for all.
What Will Happen If I Don’t Pay My Payday Loans On Time?
Defaulting on a payday loan can get you paying exorbitant fees, late fee penalties, and other types of legal actions taken against you. Most payday loan lenders take the money you owe out of your bank account every pay period. If you don’t pay the amount you owe, you could also end up with overdraft fees that you can’t pay. Getting in this situation means that you won’t be able to pay for required expenses such as childcare, transportation, or utilities. On top of everything else, you would have to deal with harassing calls from payday loan debt collectors.
Getting Out of Payday Loan Debt
There are a few ways that you can get yourself out of this type of debt. The first is an extended payment plan. With this type of arrangement, you can pay back the loan in a certain number of installments. To do this, you will need to make an agreement with your payday loan lender. But if you renege on this payment arrangement in any way, you could end up with extremely high fees and penalties.
The second way that you can get out from under payday loan debt is borrowing money to pay down what you owe the original lender. While this option isn’t ideal, it can save you a ton of money on late fees and penalties. Some of the lending sources that you can use to pay your payday loan lender include getting a personal loan, debt consolidation loan, or even borrowing the money from a friend or family member.
The last option you could use should only be considered if you’ve found yourself in a real financial bind. This option involves filing for bankruptcy. Many payday loan collectors will (incorrectly) tell you that these types of debts can’t get discharged in a bankruptcy claim. This is a lie. Should you decide to file for bankruptcy, payday loan debt will get treated just like your other ones.
Read more on our Payday Loan Consolidation Blog today, to learn more on advantages and techniques to eliminate your payday loans.