At first, payday loans may be the only hope for your finances, but, things can take a different turn, especially if you are not able to pay the payday loan back. This is because of the not-so-good things that are bound to happen once your loan remains unpaid on time.
Annoying calls, messages and threats from the lender
Once your payday loan is unpaid, lenders will not waste their time waiting for you to pay them but will frequently call you and message you to pay back your loan. These calls and messages may involve threats of staining your credit score, filing a case against you, etc. They may even bug your friends and relatives about it.
Poor credit score
Expect your credit score to be greatly affected if you don’t pay back your loan. This can affect the approval of future transactions, whether it is another loan, etc. But you can find out loan alternatives for someone who has low credit score at localcashguide.com.
Drowning in debts
The interest rates of payday loans are usually very high. Now, if you don’t pay back the loan on time, the amount you will be paying will keep increasing and the more you will not be able to pay it back. You could drown in debt even if you only wanted to be free from financial crisis when you applied for the loan.
Automatic withdrawals from your account
If the payday loan lender asks for your bank account or attached your loan to your bank account, once you don’t pay the amount, they could automatically debit the loan from your bank account. This can cause problems like automatic closure of your account and more financial problems especially if the money on your account is meant for something else.
Your life can be affected greatly, so it is either you skip payday loans or think twice about not paying the loan back on time.