What happens If you can not repay payday loans on time
It Doesn’t Have to be the End of the World if You Can’t Repay Your Payday Loan on Time
Admittedly, it’s not the best situation to find yourself in, but if you can’t repay your payday loan on time, it’s not the end of the world. If you’ve never heard of payday loans before, perhaps it’s best to start with an explanation. It is an agreement to borrow a certain amount of money over a fixed period of time. Your payday loans lender will automatically collect repayments from your bank account on an agreed day. This is known as a Continuous Payment Authority. You must make sure there is money in your bank account when the repayment is due.
What Happens if There is no Money in the Account to Pay the Loan?
Because of the agreement, your payday loans UK provider is authorised to take money from your account until the debt is repaid. If there is no money in your account when they try to take the payment they will keep trying, until the debt is repaid. If any friends or family have repaid debts for you in the past, the provider may try and take money from their bank account too. Therefore, If you find yourself in such a position it is imperative you contact your lender and try to make an arrangement. The best payday loans UK providers will be sympathetic to your cause and try to come to a mutually agreeable repayment plan.
Being Late With Payments Doesn’t Come Cheap
As soon as you start missing payments, your loans payday provider will immediately add a late payment charge to your debt. It could be £12 or as much as £20. Everyone is different, so it’s also important to check the small print of your agreement. If you can’t find any information relating to interest and charges, don’t be afraid to ask. Payday loans also continue to attract interest until the borrowed amount is repaid. This can be as much as 1% per day.
Which might not sound like a lot. But add it all up over a couple of months and a £100 debt can soon double in size. As soon as you realise you won’t be able to make the repayment you must contact the payday loans UK lender as soon as possible. There are certain rules they have to follow. Firstly, they are obliged to point you in the right direction for free and independent debt advice. Recovery of the debt should be suspended for a reasonable length of time. You can also expect to be treated fairly and allowed a reasonable amount of time to repay the debt. Freezing interest and suspending charges could be part of your agreement. The company is not allowed to pester you by telephone, email or text. You should also be allowed make small token payments to reduce the debt.