Guaranteed payday loans have become a popular source of short term borrowing in recent years thanks to the struggling economy and the impact that this has had on household prices and household incomes. More and more people are finding that their pay checks simply do not last the entire month and are consequently turning to payday lenders for help. Whilst these types of loan do have a place in the financial lending market and can be very helpful if used properly, unfortunately if circumstances mean that you miss a repayment or indeed several repayments, there are implications.
There are several unfortunate implications of missing repayments on guaranteed payday loans but these really are determined by the individual company themselves. It is really worth checking their terms and conditions prior to taking the loan as different companies deal with missed repayments with varying degrees of severity. Therefore we have tried to identify the generic consequences in the list below:
- A payday company will try and debit your account with the agreed sum of money. If this is unsuccessful you may incur charges from your bank and/ or a rollover fee from the loans company
- If a payment is missed, a representative from the company will try to contact you at home. If they are unable to contact you at home they will try work or other sources.
- If you are agreeable with the payday loan company, they will help you to work out a repayment plan
- If you continue to default on your payments and an agreement is not met, the payday loan company may pass your debt onto a debt collection agency. Your debt will continue to increase during this period.
- Once your case is passed to a debt collector the situation become more serious.
- Your credit rating will be affected in a negative way.
- Debt collectors will try and recover the debt and may send bailiffs to your house.
No guaranteed payday loan company wants the agreement to reach a point where you have bailiffs knocking at your door, therefore be sensible about arranging this sort of loan. Do your research and be realistic about how much you can afford to borrow and repay and follow the terms and conditions agreed and that transaction will be positive for both parties. If you adhere to these rules then you should not ever have to consider the implications identified above of not repaying your payday loan.
About the Author:
Laura Susstance is a finance writer from the UK. When not guest blogging or writing on a freelance basis, she regularly contributes to her own site: http://fastpaydayloansreview.com