April 6, 2009
How A Three Hundred Dollar Payday Loan Can Get You Imprisoned
If you ever get in an tough cash situation, a payday loan might be your best ticket out of there. Maybe you do not have access to a credit card for whatever reason. If so, you can take out a payday loan for some quick money. Because you get the money within 24 hours, you can pay the bills and pay the payday loan back with your next paycheck.
A paycheck loan is maybe the quickest type of loan, but it does have very high interest rates. And that’s the reason you must only use them when you have an emergency. If you can loan money some other way, it’s almost always cheaper. The paycheck loan interest rate is high to start with, and will rise to extreme levels when you do not pay on time.
You will have to pay back your payday loan on time. The interest rate will rise considerably the second your payment is late. Trying to skip out on paying can have serious consequences. A paycheck loan of $300 can transform into a debt of $900 pretty fast.
If you resolve to stay in default, you will have to face court. A paycheck loan lender will spare no trouble or expense if you don’t pay up. They’ve done this before. If the judge decides the payday loan has to be paid back, which is very probable, you will have to pay back the loan, plus interest, plus extra costs for the lawsuit you’ve lost. Your $ 900 debt just turned into a $ 2.500 obligation.
If you can’t pay that amount, the lender will get a lien on your house. If you don’t own your own house, a lien is put on your personal property to pay back the debt. They will do whatever it takes to collect their money. In some states, not paying back your payday loan can get you a one way ticket to prison.
If you’re getting a payday loan, know in advance how you’re going to pay it back. Not being able to pay back that loan you took out of sheer desperation will only make matters worse.
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