QandAs: Loans

What if I Can’t Pay My Payday Loan?

Answer:
Payday loans are basically cash advances

which are considered to be personal loans. These payday loans are also known as short term loans. Because of the so called convenience of these loans they usually have an extremely high interest rate attached to them. And, if you get in a bind and can’t pay your payday loan according to your agreement – most likely it’s going to cost you even more!

The first thing to do if you can’t pay your payday loan is to contact the payday loan company. They may be able to extend your due date; however, this will certainly cost you in terms of finance fees as your interest and late charges will continue to accumulate on your already outstanding balance. A lender may file with the court system and have your paycheck garnished. They will also most likely file a report with a credit agency which could negatively affect your credit score. Always make sure to check and see if there are special circumstances regarding payday loans in the state in which you live.


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