More than likely you are familiar with payday loans. They are loans that are only provided for short terms, and usually are used for quick money when you have an emergency situation. Of course, they are designed so that you pay them back the next time you get paid, so usually they are not large amounts and are to be repaid within a short amount of time. However, you may be wondering, what happens if you don’t pay a payday loan on time?
Well, when you take out a payday loan in Florida, you will have to pay a sizeable amount of interest on the loan. Often this is up to 25% of the amount that you borrow. The interest is high because you get the cash fast, there is no credit check, and it is a very short term loan. The problem is, if you don’t pay back the loan on time, you could end up racking up more charges and interest, which can really cost you.
What happens if you don’t pay a payday loan in Florida? In some cases you could end up owing a whole lot more than you originally took out. If you continue to let the fees and interest build up, you could end up owing double or triple the amount you took out, or even more. Then what was a quick 30 day loan for an emergency, turns into a disaster that will cost you a whole lot of money.
Once you don’t pay off the payday loan when you are supposed to, you can get in a dangerous cycle of debt. While many companies in Florida don’t have a problem with extending your loan if you can’t pay it, they will charge you for it. You will need to get new repayment terms, and it will cost you more. Then instead of paying off the loan on your payday, you push it off, making the loan even bigger and more difficult to pay off.
Now you know what happens if you don’t pay a payday loan, and this should make you very cautious if you are considering one of these loans yourself. Yes, if you have an emergency and need the money, they can help, but you need to pay them off right away. If you don’t, you will end up in bigger debt and having more financial problems than you started with.
Before you take out a payday loan, find out what happens if you can’t pay on time. Know what you are agreeing too and what kind of fees will be charged. Most importantly, don’t take out a payday loan that you already know you won’t be able to pay. You’ll only end up in more trouble.