A payday loan is a small sum of money that is provided at a high-interest rate. It is extremely beneficial and of great help in situations of financial emergencies when you are running low on savings and need immediate cash. However, payday loans come with the agreement that they are paid back quickly, failing which the borrower has to face certain consequences.
The best payday lenders in the UK
PM Loans in the UK are the best direct lenders who readily provide an online solution for any financial emergency or needs. They offer loans for even smaller amounts such as payday loans for £50 that could rise to £1500 and can be the most convenient option that is useful to pay unexpected utility bills or carry out an emergency home repair. They offer a range of flexible borrowing options to ensure that their borrowers can repay comfortably with no stress. Apply for a payday loan with PM Loans even for £50 for emergency money.
What if you become a defaulter?
If you are unable to pay back on time then it can lead to serious implications. There can be bank overdraft fees, damage to your credit score, collection calls, and could be even spending a day in court. One should not assume that since it is a small amount of £100, there could not be consequences as a defaulter. If you are not able to repay, you could file for bankruptcy or settle the debt for less than what you owe.
Here is what you can expect if you are a defaulter.
Collection calls and withdrawals from banks
Lenders never waste time when you owe them money. They will immediately withdraw the amount from your bank account if you have granted them access as required by the loan contract.
Lenders might divide the charge up into smaller portions if the debits fail to process. Each unsuccessful attempt could result in a bank charge against you. Successful attempts can empty your bank account and make other transactions fail which will again result in fees.
Simultaneously, lenders will also start calling you, sending you letters from attorneys, get in touch with friends and relatives whom you listed as references while applying for the loan. However, good lenders do not go for any illegal ways like threatening a borrower with arrest or jail. This is why it is important to choose a reliable payday lender.
Possibility to negotiate
Lenders would prefer to get their money directly from you rather than selling your loan to a third-party collection agency. Your debt could be purchased by third parties for as little as a few cents on the dollar.
Deal sensibly and start by promising to pay the loan in full if you can, but only 50% of what you owe. If your lender sends you a court summon, be sure to show up in court so that your lender does not win.
Paying up your payday loans is extremely essential to avoid future complications. Hence, check before applying to ensure it suits your needs and that you can manage to repay on time.