The consequences of not repaying payday loans

As with all bills, payday loans must be paid back in a timely fashion. When applicants borrow money from their lenders, they are agreeing to pay that balance by a mutually agreed-upon date. Because these loans are advances on future paychecks, the client's next payday is usually the deadline.

Before loaning funds, payday lenders are required by law to explain all of their penalties to borrowers. Every financial institution has its own rates and charges for late or missed payments, but it's important for applicants to ensure that they understand how these additional fees are calculated.

Some lenders allow their clients to take out an additional loan or extend their payment plan. This can lead to higher debt in the long run as borrowers try to cover the charges associated with multiple loans at once.

At CASH 1 we take the time explain all of our fees and interest rates before completing a transaction. We help our clients understand their options in case they are still struggling to make ends meet after borrowing from us. 

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