“Hey! Can someone else pay my payday loan?” Probably one of the most asked questions about payday loans. To answer this, I am going to give you brief information about payday loans.
Payday loans are loans taken to be repaid within the shortest time possible in most cases 2 weeks. Most people despise these loans because of their high interests and try to avoid them as much as possible. But sometimes we still find ourselves borrowing payday loans because of one reason or another. When you are borrowing a payday loan it is deposited in your account and it cannot be deposited into another person’s account. But once it is processed there is nothing that stops from sharing the money with your friends. Once you take a payday loan it is your responsibility to pay it back but that doesn’t mean that another person cannot pay your payday loan.
As long as the person is aware and you have agreed that he or she will take the responsibility of your payday loan, he can go ahead and help you pay your loan. You can also borrow money from your friends or family members who might be having enough money to repay your payday loan and be left dealing with them instead of dealing with the shady moneylender online because it is so much easier dealing with your friend than dealing with the lending company. Instead of defaulting your payday loan, ask for help from a friend or a family member to help you settle the loan because payday loans can cause you so much pain. Other frequently asked questions about payday loans include:
What happens if I don’t pay back my payday loan?
In most cases, if not all cases the moneylender like A1 Credit will require you to provide your bank details before they can approve your payday loan. This makes it super easy to get money from your bank account in order to repay back the debt. You don’t even need to write them a check, they will cut the right amount when time is due. If you don’t have money on your bank account, they will still continue trying to get money from the account which will lead to bank overdraft bringing problems with your bank too!
Every time the lender tries to withdraw money from the account and the amount is insufficient, the bank will charge you overdraft and the lender will realize there is always no money in your account and that’s when the phone calls will start. They will use the information they have on you and use collection agencies to try to get you to repay the loan. They will use the phone numbers at your place of work, and even try to contact your friends and family members trying to get you to make payments.
What is payday loan tornado?
This is where most people does it wrong. I know of people who have found themselves with loans that they can’t literally pay because of getting caught in payday loans debt spiral. This is how it happens, if you are on the verge of getting to your deadline and you have not paid your debt, you can decide take another loan in order to keep up with the debt as well as the fees. But instead of making things better for you, taking another payday loan just makes things worse for you.
If you are trapped and you are unable to pay back the money, you will be trapped into what is normally referred to as payday loan tornado. And instead of defaulting a single loan that you had in the beginning you will be potentially on the verge of defaulting several of them. This will make it even harder for you to repay the loan and still get yourself a good financial background and if you default it will definitely affect your credit score.
What can I do if I default my payday loan?
If you get a payday loan and when the deadline is approaching and you have a feeling that you will not be able to repay the loan by then, contact your moneylender and try to negotiate the payment terms by explaining your situation and why you will not be able to repay the loan. By doing that, you might get another repayment plan which will help you avoid dealing with the collection agencies as well as having to appear on court because of failing to repay your loan. Work on your budget and cut your spending so that you can be able to repay the loan as fast as possible.
You can even try to get some loan from other institutions which offer loans at a lower rate and repay your payday loan before it defaults. Sometimes it is inevitable to avoid defaulting the loan because of the high interests. So if you find yourself being summoned in a court of law because of not repaying your payday loan, ask the collector to provide enough evidence and proof that you owe them money and if they can’t you just be having some grounds to postpone the proceeding of the case until they have enough evidence.
Can you negotiate your payday loan debt?
Yes, it is actually regarded the best idea when you know that you are most probably going to delay paying the loan. The moneylender will always want something even if you don’t pay the full amount so there is hope that you will get something out of the negotiation. Contact your money lender and discuss your situation and come up with new agreements. If they are willing to settle for less instead of the full amount that you owe them, make sure that it is in writing. This document can be used in the court of law if they decide to sue you for the whole amount. The document may also help you stop those boring calls from the collection agencies and also avoid fees of missing payment.
