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Defaulting on a Payday Loan

Because life is full of emergencies, sometimes we find ourselves in need of a short-term loan to help with our immediate financial needs. As with traditional, long-term loans, payday loans must be paid back over a certain period of time. Defaulting such loans can lead to certain consequences. What is a Payday Loan? A payday loan is an unsecured, short-term...

What Happens If I Don’t Pay Back a Payday Loan?

What Happens If I Don’t Pay Back a Payday Loan?

There are several things you can expect to happen if you fail to repay a payday loan on time.  Bank Withdrawals: If you’ve given lenders access to your bank account, they will immediately initiate automatic withdrawals until the debt is repaid. Charges may be broken into smaller amounts to collect whatever money is in your account.  Collection Calls: Whether or...

What is an Installment Loan?

What is an Installment Loan

An installment loan is a loan for a specific amount of money that is repaid over time by a set number of scheduled payments. Installment loan payments combine the principal loan amount with an interest rate. The loan term may be only a few months or as long as 30 years. As you make payments, the loan balance lowers. Installment...

Can I Go to Jail for Not Repaying A Payday Loan?

Can I Go to Jail for Not Repaying A Payday Loan?

If you have defaulted on a payday loan, or are concerned that you will default on one in the near future, you may be concerned that you will go to jail for not paying the loan. However, in the United States borrowers who are not able to pay back a loan cannot be jailed for failing to by a debt....

15 Things Debt Collectors Can’t Do

15 Things Debt Collectors Can’t Do

Debt collectors have a reputation of doing anything to collect on an outstanding loan. The federal Fair Debt Collection Practices Act (FDCPA) was enacted to make it illegal for debt collectors to use abusive, unfair, or deceptive practices when they collect debts. It’s important to know your rights when debt collectors call on an outstanding payday loan or other loan...

Answers to Common Debt Collection Questions

Answers to Common Debt Collection Questions

There are many myths and legends regarding the behavior of debt collectors and the way they collect.  Below are several concerns most often cited by individuals regarding debt and collections.      Does a collection ever go away?   No, a collection report does not go away. You will receive a collections report on your credit for the debt but even after that report...

How Debt Collection Agencies Find You

How Debt Collection Agencies Find You

Debt collectors can use many methods to find out where you live. However, they may not always know exactly where you live — especially if you’ve moved since defaulting on your loan with the original creditor.  Collection agencies can use any of the following methods to find people. Banks: Your current or former bank may provide your address to a...

Debt Collectors Now Using High-Tech Methods

Debt Collectors Now Using High-Tech Methods

If a debt you owe is turned over to a collection agency, there’s a good chance a debt collector may employ high-tech methods to convince you to pay up. In today’s society, a simple letter, phone call, or Internet search isn’t the only way a debt collection agency can try to collect on debt. New, high-tech collection methods save labor...

How to Get Out of Payday Loan Debt

How to Get Out of Payday Loan Debt

If you’re currently stuck with a payday loan that you can’t seem to ever pay off, you aren’t alone. According to the Consumer Financial Protection Bureau, more than 60% of borrowers are trapped in payday loan debt. Those trapped in payday loan debt often roll over the loan and end up paying more in fees than their initial loan amount....

My Debt has Been Turned over to a Collection Agency. Now What?

Ok, so you’ve just defaulted on a payday loan, and your debt has been turned over to a collection agency. Granted, this delinquency will stand out on your credit report, and your credit score will decrease, but you can still recover from that. Note that this event will appear on your credit report within three to six months after you...