If you ever get in an tough cash situation, a payday loan may be your best ticket out of there. Perhaps you can't use a credit card for some reason. If so, you can get a payday loan for some quick money. The money you get through the paycheck loan can be utilized to pay off your bills and you use your next paycheck to pay off the payday loan plus interest.
A payday loan is perhaps the quickest type of loan, but it does have very high interest rates. Because of these high interest rates, use them only for emergencies. If you can loan money from another source, it's almost invariably cheaper. The interest rates of a payday loan are high from the starting point and will get a lot higher if you don't pay back on time.
Not paying off your paycheck loan is a bad idea. Payday loan conditions are prepared in such a way that interest rates go up dramatically the second your payment is overdue. Trying to skip out on paying can have serious results. That $300 payday loan will turn into a nine hundred dollar debt in a very short time span.
If you determine to stay in default, you will have to explain your position in court. A payday loan lender will spare no trouble or expense if you stay in default. They've seen this before. If you don't win in court, which is probable, you will have to pay the entire paycheck loan plus extra costs. And there you have it, your nine hundred dollar debt suddenly turned into a $2.500 obligation.
If you can not pay that amount of money, the lender will get a lien on your house. The lien will be put on your personal property if you don't own a house. The payday loan lender will get his money one way or the other. It may even land you in prison in some states.
If you're playing with the idea getting a paycheck loan, know in advance how you're going to pay it off. You will just make things worse when you get a payday loan in desperation.
