What happens if i don't pay payday loans?

Try to pay off the debt if you can.

Payday loans

come with exorbitant interest rates and fees that often make it very difficult to repay them. If you can't repay a loan quickly, they may send the account to a collection agency, which will hurt your credit. The payday lender has your check.

You can collect it on the payment due date. If you don't have enough money in your account, your check will be returned. Both your bank and the payday lender will charge you a fee. Payday lenders can withdraw money directly from your bank account.

If the funds aren't there, the bank and lender could face overdraft or underfunding fees. If your social security benefits or VA payments are directly deposited into a bank account that a payday lender has your permission to access (through your check or authorization), you can redirect where your automatic deposits are made. Most traditional loans have a repayment plan of more than one month, and the monthly payment is usually adapted to your ability to pay. Because lenders don't declare loans to Experian, Equifax and TransUnion credit agencies, repaying the loan won't improve your credit.

If you think a fast lender harassed you while you were trying to collect your loan, contact the DFI to file a complaint. Many people use payday loans to cover a cash shortage, but because of the high cost of borrowing and the short term of loan delivery, it's difficult to pay off a payday loan on time. This usually includes additional fees, such as a significant late payment fee and an interest charge for the extra time it takes to repay the loan. A cash advance loan is a small, short-term, high-interest loan offered in anticipation of receiving a future lump sum in cash or a payment.

A payday lender cannot threaten you with imprisonment or use criminal proceedings as a lever to collect the debt. By giving a payday lender a check or accessing your checking account, you allow them to access any exempt fund. A quick loan is a relatively small, high-cost loan, which usually expires in two weeks and is granted with a post-dated check from the borrower or with access to the borrower's bank account as collateral. If the payday lender charges a higher rate than what Washington law allows, the payday loan cannot be enforced.

If you can't afford a quick loan, you can pay off the debt for less than you owe or file for bankruptcy if your debts are overwhelming. By writing a check to your account or authorizing the payday lender to withdraw money directly from the account, you authorize the payday lender to withdraw money from your account, regardless of the type of funds in the account. Any payday lender that makes you pay an additional fee to “renew” your payday loan and make the entire loan come due later on is in violation of state law. A consolidation loan is another option if you need to repay multiple loans or high-interest debts, such as credit cards.

Most people plan to use a payday loan for a week or two, but end up not being able to pay it back right away and that's where it gets dangerous.