What happens if you default on a payday advance?

Question

my husband and I have had to move over 1200 miles from home due to a family matter and will not be returning. We each have a payday advance, mine is under $500 and his is just over $500. If we cannot pay them in full on the due date what can happen? We want to make it good but cannot pay it all at once, it took all we had to relocate. PLEASE, no mean or judgmental remarks--we all have issues. Thanx!

Answer 1

Let them know your situation and see what they say. Keep in mind that you will be incurring interest charges continuously until this is paid off. Some of the highest interest rates known to man. Payday loans have to be about the worst loans you can make. This will also have a negative impact on your credit score.

If you contact them and describe your situation and your intent to pay them back, they'll probably be pretty cool about it as they will be earning this huge interest rate on your loan. Good luck.  

Answer 2

Well, what did you put in as collateral?

Usually people put their automobile as a common choice.

Answer 3

They will work with you to set up a repayment plan. Usually split it into 2 payments, however as long as you send them something and they cash the check, they can not really do anything as long as you send them money!

Answer 4

You need to contact the company that you got the money from and explain your promblem and ask if you can pay the fee until you get the money to pay the balance, They ca take you to small claims court or if you have gave them a title ,they can repo..  

good Luck

Answer 5

Call PayDay loans and work out an agreement........

Answer 6

The worst thing that will happen is that the lender will report to a collection agency and you will be placed in the state database and not be able to get another loan in THAT STATE. Many people get around this though when they need money. For example, a person in Florida may have a payday loan for $500 and not be able to pay it back. The same person may go to Georgia to get another loan and then cross into Alabama to get another loan. Florida cannot see whether or not you have a loan in another state and vice-versa. You cannot be arrested for failure to pay back a payday loan. You can be placed into a collection agency and that's all. The reason for this is because the lender took a risk when they accepted a post dated check from you and the state attorney will never prosecute these cases because the lender is not supposed to accept a post dated check and if they do so it's at their risk.