You’ve just lost your job or had your hours at work cut back and now you have to figure out how to repay your 1-hour payday loan. But what happens if you can’t repay your loan? Do they seize your account? Refrain you from asking anymore loans in future? Well, if you borrowed from a reputable lender like Mypaydayloan then you don’t have to worry.
Reputable lenders understand that even the best-laid plans can sometimes go awry and are always ready to listen to borrowers who can’t make repayments on time. Things can always go wrong at any point of time, without your any fault. Only if your lender could listen and understand your circumstance! All you need is to contact them and explain your situation. They’ll offer you some potential solutions, such as:
- Extending the loan term
- Making interest-only payments for a period of time
- Negotiating a new repayment plan
- Refinancing the loan
Bank Withdrawals
If you can’t repay your payday loan on time, the first thing most lenders will do is try to withdraw the amount you owe directly from your bank account. If you don’t have enough money in the account to cover the full amount of the loan, the lender may try to withdraw multiple times, which can lead to NSF (non-sufficient funds) fees from your bank. And you have no idea how all that is going to affect your credit score and future loan requests.
Additional Fees and Interest
Lenders may charge additional fees and interest if you fail to make payments. These charges can significantly increase the amount you owe, to the point where the balance owed could double or even triple. This can make it difficult to repay the loan, leading to financial hardship. Therefore, it is important to be aware of these potential charges before taking out a loan.
By understanding the terms and conditions of the loan, you can avoid falling into a difficult situation. You can do this with the help of a few things. Firstly, sit with your lender and ask them any questions you may have about delay in money return and what repercussions you might face. It’s always better to prepare in advance. Secondly, go through all the terms and conditions carefully. If you have agreed on to certain terms and conditions that allow your lender to exercise his right to impose extra interest, then there’s no way you can get out of it. The best practice is to always read your documents carefully.
Collection Calls
Some lenders may also send letters from lawyers and contact any references you used when you took out the loan. If the lender still can’t get in touch with you or collect the debt, they may outsource the services of debt collectors.
Arrest Threats
Aside from contacting your references and sending threatening letters, some lenders go as far as to threaten you with arrest in order to get you to repay the debt. While most of these threats are usually empty, they can be terrifying and may even lead you to believe that you will be arrested if you don’t repay the debt immediately. This can put an incredible amount of stress on you and lead you to live your life in fear.
To avoid these situations, have a genuine word with your lawyer and even your lender. Request for any extra time they can provide you.
Tips to Help You Pay Your Payday Loan on Time
As you can see, failing to repay your payday loan can have serious consequences. And it’s simply not worth the risk. Here are three simple tips to help you pay your loan on time:
- Find an additional source of income- If you’re only relying on your primary income to repay your loan, you may find it difficult to make ends meet. Consider finding a part-time job or picking up some freelance work to help cover the cost of your loan. It cna get a little overwhelming, but you got to pay the bills.
- Practice frugal living-One of the best ways to free up extra cash is to cut back on unnecessary expenses. Take a close look at your budget and see where you can cut corners. You may be surprised how much money you can save by making small changes to your spending habits.
When you cut your expenses, you become conscious of your spending habits. Which is again a very good habit to have if you have taken a loan.
- Create a repayment plan- If you’re having trouble making your monthly payments, try creating a repayment plan that outlines how much you’ll need to pay each week or month. This can help you stay on track and avoid falling behind on your payments.
- Ask for extensions- If you’re truly struggling to make your payments, don’t be afraid to ask for an extension from your lender. In most cases, they’ll be happy to work with you to ensure that you’re able to repay the loan without any difficulty.
- Seek out financial assistance- If all else fails, don’t hesitate to seek out financial assistance from family or friends. They may be able to help you cover the cost of your loan until you’re back on your feet again. Remember to ask only the people you can truly rely on.
Don’t let the financial stress cause you more problems. With our easy online application process, you can be approved in minutes and have the money you need deposited directly into your bank account within 1 hour. So don’t wait any longer, apply now!
