Things That Can Be Done To Fix An Unpaid Payday Loan

Once a personal loan has been obtained it is necessary to pay close attention to the expiration of the installments, which normally have monthly frequency. But what happens in case of late or non-payment?

I am running late with the payment; how bad is it?

Let’s see immediately what happens in case of non-payment of one or more installments of a loan or mortgage. The main repercussions:

  • the financial company or bank may demand the payment of interest for late payment
  • a late payment of an installment or payment slip of a loan or credit card involves a report in the database.

payday loan contract

Each payday loan contract must provide for the default rate applied in the event of non-payment. This rate may vary from company to company, but in all cases it must fall within the threshold rates communicated quarterly by the U.S. bank. Each credit institution complies scrupulously with these conditions, but if the client is not sure of the actual compliance with the law, the advice is to rely on a consumer association. The latter will calculate if the rates applied fall within the thresholds in force.

To know the consequences in advance, just read the pre-contract and / or the contract signed with the bank or with the financial intermediary, which lists the obligations to which the consumer must comply and which also indicates the extent of the sanctions in case such obligations are not respected.

To avoid all these consequences it is advisable to evaluate, when requesting a personal loan, those products offered by banks that provide alternative repayment solutions in case of difficulty: such as the possibility of skipping an installment, varying the amount or shortening or lengthening the plan of return. In any case, if you are in difficulty in paying an installment, it is advisable to contact your bank promptly before the deadline in order to find an adequate solution to the problem.

What can be done?

Inform the lender

When you realize that you cannot repay the sum of money due on the maturity date of your personal loan, you should inform your lender about it in any form that is convenient for you. It is best to send an email or a letter, but you can also contact them by the phone, and request a rollover. A rollover is a renewal of your debt, where you stand to pay the financial charges and possibly an additional debt rollover fee, and get to have your repayment period extended, usually for the same term as the initial loan.

Ask for a rollover

You should keep in mind that only 3 states allow unlimited number of rollovers, while 22 states prohibit them altogether. If a rollover is not legal in your state of residence, the lender will be entitled to cash the postdated check against which your loan was secured. It is therefore the best strategy to estimate how possible it would be for you to repay the debt within the stipulated time period before you apply for a loan.

Inform your bank

In order to prevent the lender from accessing your account, instruct your bank to decline the payment. It is your right as a customer. But you should do so at least two working days before the payment is due, otherwise the bank might not be able to interfere. In case you issued a post-dated check, contact your bank and ask them to cancel it.

Recent Posts

7 Payday Loans For People With Debt Or Credit Problems / July 29, 2019

It should not happen, but sometimes it does. The economic difficulties are incumbent, there are so many expenses, money is scarce and so you end up giving priority to other things, skipping paying some personal loan installments. And this is how your name ends up in credit bureaus’ registers, the database of bad payers. Anyone […]

How To Consolidate Your Payday Loans / July 24, 2019

Debt consolidation: definition and purpose If you want to reduce your monthly payments on current loans and possibly get additional liquidity, you can use a debt consolidation loan. This instrument is in fact a solution that allows all loans to be extinguished and combined into a lighter monthly payment, thanks to more competitive interest rates […]

Things That Can Be Done To Fix An Unpaid Payday Loan / July 6, 2019

Once a personal loan has been obtained it is necessary to pay close attention to the expiration of the installments, which normally have monthly frequency. But what happens in case of late or non-payment? I am running late with the payment; how bad is it? Let’s see immediately what happens in case of non-payment of […]

Types Of People Who Shouldnt Apply For A Loan / July 2, 2019

With all the upsides of getting a payday loan online – they offer a quick fix for a seemingly hopeless financial deficit, they are readily available and convenient, etc. – there are certain types of people, and certain situations, in which it is really best to find other means of facing the money requirements. If […]

A Payday Loan Is Not Repaid On Time. What Does It Entail? / June 28, 2019

When you do not pay back your personal loan on the maturity date, the institution that have granted it will not wait until you start paying again. What do you need to know under such circumstances? From the first unpaid deadline, the credit agency will send you a letter, to inform you of the consequences […]

Best Money-Saving Tips in 2019 / June 23, 2019

We’ve prepared 5 tips for you to adopt the right habits to save money on a daily basis in 2019. Tip 1: Do your accounting regularly We advise you to record your expenses and income every day using a specialized software. It may seem time-consuming, but it should not take more than ten minutes a […]