Even though you never thought that you were going to find yourself in such a mess, it seems as though one thing after another hit you and before you knew it you had to borrow money from a cash advance company. Payday loans are great for those sudden expenses that you are just not prepared for in between paydays. The entire purpose of the payday loan though is to pay it back on your following paycheck. What happens though when you do not have enough money to do that?
While you may be willing to let your credit card payments slip, what happens when you are already behind on your rent? If you pay the payday loan back, you could find yourself without enough money to eat or put gasoline in the car to get to and from work. This of course would all be dependent upon how much money you had to borrow from the cash advance company in the first place. While the ideal is to borrow the least amount needed, maybe your sudden expense was a lot of money. What happens now?
Do you really understand what is going to happen if you do not repay your payday loans? You have to already be aware of the fact that there are going to be consequences to face. While you may be okay with the thought of that, not knowing exactly what you will be facing is not a good thing. One of the first things that you are going to notice is that the interest on your payday loan will quickly pile up. This could very well double or even triple the amount of money that you owe which means you are only going to find yourself in a bigger hole.
If you still are not able to make arrangements to pay back the money and all of the additional interest fees to the payday loan company, you may find yourself in court. Because so many people out there are trying to take advantage of borrowed money, the payday loan companies are generally not all that forgiving for those who do not repay their money on time, even if there is a legit reason behind it.
So not only will you be asked in court to pay the amount of money that you owe to the payday loan company but also they could, and probably will, require you to pay the attorney and court costs that the company acquired by trying to collect their money from you. If you are unable to pay this bulk amount right away, you could find that a lien on your property is placed. They also could seize your checking accounts, your personal property, and real estate until they receive all of the money that is owed to them. In some states, they can also have your wages garnished.
One way or another the payday loan company will get their money back so it is best that you do everything you can to pay it back on time, even if it means borrowing from a friend or a family member. You do not want to find yourself in such a situation.
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