16:42 31 October 2013
The worst nightmare of any hard working UK citizen is not being able to repay their payday loan. The increasing interest rates and constant harassment will never seem to end. However, what exactly happens when you can't repay the payday loan? And what are your options?
First of all, the lender will try to get the money directly from your banking account. But if there aren't enough funds there to cover for the payday loan, you will be charged an overdraft fee. By this time, your phone is going to be ringing and they will try to threaten you in every possible way. You should simply not answer your phone at this point.
The phone will start ringing at your work place as well, with the same threats. By now, the payday loan lenders have probably switched to a credit collection company, which will really increase the whole harassment process. You should probably file for bankruptcy.
There aren't many things you can do, but you could try to renegotiate the payday loan deal. Perhaps you can reduce the balance and you can settle for a lower sum that you can pay regularly. Try to obtain any type of new payment methods or reschedule the payments. See if you can borrow some cash from friends or family to repay the loan or if you can sell something you own.
There are no easy ways to get out of a situation like this. This is why you should only sign up for a payday loan deal only if you know exactly that you can repay it in time. Always look for alternatives such as borrowing money from friends or relatives before taking up a payday loan.
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