A lot of people borrow money without thinking too much about the consequences of non-repayment. In the case of fast payday loans, borrowers are not too concerned about repaying their debt because there is no collateral involved. Even if these loans are unsecured, not paying them could ruin your reputation. You cannot just get quick loans and leave them unpaid.
Many people are attracted to quick loans because they can obtain them online. When you get a payday loan, the money can be deposited to your bank account right away. But first, you have to agree that the lender can have access to your checking account. The lender can withdraw the amount of money you owe them from your account when your next salary is deposited. This is an automatic process, which means you have no choice but to pay the lender back.
What if your account remains empty?
Payday loan providers have collection agencies which take care of unpaid debts by looking for obligated borrowers. Collection agencies can resort to underhanded activities, so to avoid getting in trouble with them, make sure to pay off your payday loan on time.
The lender may send you demand letters asking you to settle the debt. Worse, they can take legal actions, which could add up to the amount you owe them, as they may put the litigation expenses on you.
The most terrible thing that can happen is your reputation may be ruined. Even such a small amount of debt can potentially make you a bad borrower. Your credit score could suffer and it might be hard for you to find lenders who are willing to lend you money in the future. What if, in the future, you want to obtain a mortgage loan? If you cannot pay even a small debt, how will you be able to pay a major one?
The Case of a Bouncing Check
Do you know what happens after you have obtained 1 hour payday loans? A lot of people don't care. The lender usually will have your check and wait until the due date to cash it. If it bounces, you have a problem. It may not be too serious. The lender will just charge you a bounced check fee. The lender will also notify you about the unpaid debt. Some are generous and will allow you to get another payday loan to pay off the first one. Some lenders are also willing to make special payment arrangements with you.
Not all will be willing to help you out, though. Some may call you at your office or home looking for you. The worst case scenario involves you being sued by a lender for non-payment of a minor debt. You can also be charged legally for writing bad checks, although a lot of customers can get away with these cases. Then again, this does not mean that you can leave your debt unpaid. Even without legalities involved, non-payment of any debt is unethical. It gives you a bad name. The payday lender can blacklist you or report you to others so that they will avoid you therefore, you will not be able to borrow money next time.