Chosen by Asker

I thought everyone knew those loan places charge 200% interest . That is what happens when you go to a loan shark , You get a couple of dollars and owe then a hundred . It is NOT worth it , even if you are starving because you will be starving for LONGER once you start paying their interest . When you can't pay , they go to court to get even more fees approved ( late fees , collection fees etc ) and then they send collections and try to confiscate any property ( car or whatever ) . There is no jail or arrest ( no paupers jails in America ) just endless phone calls , letters , wage garnishments , taking your property . . . They NEVER Wait , they move fast to court and if you do Not show up , they win extra and then start phase 2 . Sorry you got messed up with the sharks , Loosing them is like loosing cockroaches . The cheapest and fastest way out is for everyone to work 2 jobs or more and pay them off FAST . The longer it takes the BIGGER the bill keeps getting . If it is $500 now , it will be $2000 next year just from fees and interest charges . Everyone start working 2 jobs and get rid of it now . >

by kate

5 months ago

Asker's Rating: 

Prepare for the badness

by Watch IT!- 5 months ago

It all depends on the policies of the company he borrowed from. When they go to deposit the check and it bounces, he will first get a an overdraft charge. Next, the company that he borrowed from will probably add in a returned check fee plus the interest, putting him even further behind. He will probably t hen get phone calls from the companies telling him he needs to pay or roll over the account (they love it when you roll over the account because they can just keep charging more interest). At some point, however, they will stop being nice and sue your dad for payment. If he doesn't pay then, they may go back to court and get a wage garnishment, which means that the payment comes out of his paycheck and he never sees that money. They will probably also report it to the credit bureaus, which means next time he goes to get credit, he will either get denied or end up paying a very high interest rate. The only solution, unluckily, to this situation is to figure out some way to scrape together the money and pay the loans off - otherwise, it is likely your dad will keep getting further behind.

by Steve D- 5 months ago

Payday loans are awful. They charge you a ton. The typical fee for a $100 two-week payday loan is $15. When figured over a year, that's a 391% annual percentage rate (APR). A payday loan costs at least ten times as much as a small loan from a traditional bank. You may end up paying an APR of 300%, 400% or even 1,000%. If your check to the payday lender bounces, both the bank and your lender may charge you bounced check fees. In some states, a payday lender might threaten you with prosecution for writing a "hot" check (even though the lender knew that you didn't have enough money in your account when it accepted your check). If you can't repay the loan and the fee on the due date, you may get trapped in an endless cycle of debt: you are never able to pay off the loan, but you are repaying the loan fee over and over. Just like any other financial product, you must use it with caution. If you know you can't meet the terms of the agreement, don't do it!!. If you can't pay it back on time, a free payday loan can end up costing you more than you had hoped for and put you in a cycle of debt that is hard to overcome. If you wait until next year, you will owe hundreds of dollars more than the loan was worth. They will take you to court and sue you. As soon as you realize you won't be able to pay you'll need to contact the company and try to talk to them about a possible payment plan. Explain your situation to them and if they're not helpful ask to speak to a manger and try with them. Make it clear that you do want to pay them and get out of this mess, but your finances didn't turn out as you were hoping. Typically, because they have a lot of delinquent accounts and other reasons, these companies will often not report you to the normal credit agencies. They'll report you on teletrack, a system used largely by other payday lenders, and will be very aggressive in calling you multiple times at home and work. No matter what they say, this is considered a civil matter, so while they can sue you, you will not be arrested. Every state has different rules for payday loans. In some states they are required to set up payment with you. You'll want to become familiar with your state's rules. For this reason and for help setting up your financial plan from here, you'll want to immediately contact a financial counselor. There are many non profit credit counseling agencies that can help you safely get out of debt. If you have multiple payday loans they may advice you to look into debt consolidation loans to make the debt more manageable. Depending on your particular situation you may also consider getting another job, probably short term. You can check local classifieds for things like cleaning offices on weekends of mowing lawns. If you have made any recent large purchases you could still return for the cash I would look into that as well. Most importantly, get a credit counselor and do not take any major actions until you do especially obtaining another payday loan. You don't ever want to be realizing "I can't pay back my payday loans!" again.

by Heather- 5 months ago