What to Consider Before Applying for a Payday Loan
A payday loan could be right for you if you are facing a financial struggle and cannot make it until your next paycheck. If you need a quick loan in order to pay for a car repair or a mortgage payment before your next payday then a payday loan could be right for you.
If you need same-day funding a payday loan may be the quickest way to get cash into your account. To be eligible for a payday loan, you must be a US citizen over the age of 18. You also need a steady income of at least $800 per month and a live checking account for the loan to be deposited into.
You can even get a payday loan if you have bad credit, Dollar Hand accepts people with all types of credit histories. As the broker, we find the most suitable lender for you that it most likely to accept your payday loan claim with A1 CAsh Loans
What Happens If I Can’t Repay a Payday Loan?
If you can’t repay your payday loan, there are several actions that your payday lender may take. Typically, payday lenders enforce wage garnishment, lawsuits, and debt collection. Whilst incredibly rare, time in prison has also been given for failure to repay money that is owed.
After the agreed upon loan period has ended, the lender may implement one or more of these actions to obtain any unpaid funds. They are also able to instigate automatic withdrawals from your bank account, which could result in bank fees for yourself.
If this proves to be unsuccessful, they could set up wage garnishment. This would involve a portion of your wages being withheld and then sent directly to your lender. If all else fails, your lender may take you down a legal route and you could be summoned to court.
Can I Repay My Payday Loan Early?
You can always pay a payday loan off earlier than you originally agreed with the lender. Most lenders will not charge you a fee for trying to repay off any money borrowed earlier than they originally anticipated. In spite of this, all lenders do operate with different policies and so it is always important to check if you will be charged for repaying your loan at a different date.
Alternatively, some lenders offer reduced interest if your loan is paid off earlier than was originally agreed, meaning that you will end up paying the lender less money than if you were to repay your loan on your actual payday with A1 CAsh Loans.
Paying a payday loan off early is not what a payday loan is designed for, as it is supposed to last you as a source of emergency funding until you receive your upcoming monthly income. Even if you feel you are able to pay off your payday loan in advance, the interest rate and fees may still be the same if you wait until your official payday to do so.
Can I Go To Prison If I Can’t Repay my Payday Loan?
The only time where a prison sentence is an option for failure to repay a payday loan is if a lender takes you to court or sues you, and you fail to appear in court on multiple occasions. Then, a judge could consider issuing a warrant for your arrest.
In most cases, payday lenders in the US will try to get their funds back through means that are beneficial to both parties. If for whatever reason this cannot be easily achieved, a lender may decide to secure their funds by taking you to court. A judgement order will be made against you in the court if you don’t dispute the lender’s claim, or if they win regardless.
If you fail to repay debt such as: council taxes, child maintenance, criminal fines and business rates, there is a much higher chance of being sentenced to prison. As with any kind of loan, it’s incredibly important to make sure you’re only borrowing what you know you’ll be able to pay back.
How Long Are Payday Loans Typically Used For?
Payday loans are intended for short-term use, helping borrowers to cover their immediate/emergency cash needs while waiting for their next payday. Due to the nature of these loans, they are typically repaid back once the borrower has reached their next payday.
It’s important to note that payday loans are not a suitable form of borrowing for long-term difficulties, often coming with high interest rates that can add a substantial amount to the payment owed if borrowed for longer terms.
Payday loans are useful for cash emergencies as borrowers are able to receive the funds shortly after being approved for the loan. With loans found through A1 Cash Loans, you could find yourself receiving the funds in just 24 hours or the next business day, subject to the details of the loan that has been requested as well as the personal details you’ve provided in the request form.
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