What Are The Consequences Of Not Paying Off The Same Day Loans?

Nowadays, it has become trend to rely of short term financial help from money market at the time of emergency. There are number of people who take the help of Same Day Loans in the need without taking a look at its conditions as well as consequences of nonpayment. This is one of the main reasons that people face trauma after due date which worsen their lives and bring the negative publicity to the service. 

That is the reason, experts always suggest people to check every part of the financial service before availing it. Here you find the information about this small cash service and the consequences to not paying off your debt.            

Brief Intro about Same Day Loans 

As name itself says, these are the small financial services that offer the few hundred bucks to the working individuals. These finances basically introduced to provide the helping hand to working people who are facing issue in filling the financial gap between two paydays. The tenure of these funds ends of the coming salary day of the borrower which helps him/her to make easy payment. The interest rate of same day loans is slightly high that make it expensive. The unsecured nature and traditional free lending process are the main reasons behind the high charges of deal. This makes it important that one should check his/her pocket before availing the loan amount.

Consequences of Not Paying Off the Same Day Loans

The high price of these fast funds sometimes create problem for borrowers as they take the cash without thinking about repayment. People who take the service as the long term solution of their problem usually face the consequences of not paying off the debt which are explained below:

1.    High Penalty Charges: The very first consequence is to pay the penalties charged by the lender based on the stipulation of the loan agreement.

2.    Humiliation from Collection Agencies: At times lenders pass on the unpaid debts to the collection agencies which have the freedom to contract you number of time for payment. They usually call number of times at home, workplace or any other number which brings ignominy among peers.   

3.    Harassment: There are times when employees of collection agencies start harassing borrowers through threatening calls.

4.    Flawed Credit Rating: When borrower doesn’t make the payment of Same Day Loans lenders usually report it to the three major bad credit bureaus. This brings the stain on your credit report which makes it hard for you to qualify for loans.

5.    Legal Proceedings: It is noteworthy that lender has full right to take legal action under the court of law when one doesn’t make the payment. And in case one finds guilty that he/she needs to follow the judgment at any cost. This consequence also brings the attorney fees that can create bigger financial problem in one’s life.