Payday loans are all too often a part of daily life. You are pressed for cash and payday is 10 days away. What do you do? Apart from selling an asset, which you probably cannot do without, you can get a quick payday loan and guarantee it with a personal postdated check. Texas payday loans or any other state have punitive interest rates, seeing that you request them as a last resort. They also come in handy when you would otherwise not have an alternative source of cash. The idea is to have your account debited as soon as your salary checks in. What happens if you do not honor your commitment?
Well, it could happen that your cash is tied and hence not enough to pay the amount borrowed. If you had not communicated to your lender prior to defaulting, they will certainly send you reminders. The polite reminders may go from irregular to constant, even several per day as time goes. If you still fail to pay up or communicate your intention, they may start calling you regularly, in addition to the regular email reminders.
When finally all their collection efforts fail, your lender may sell your loan to a collector. That is not something you want because some collectors seemingly get their high from nagging you. While it may start as plain nagging, it could get uglier. Phone calls with unfriendly or threatening tones, or even boldly showing up at your place of work. Some debt collectors have been known to show up at people’s doors every hour until they scare you enough to have you pay. Most online lenders do not report your failure to pay to all credit bureaus (but they will report to the three main ones, which is a damper). In a way, you could end up running your credit. Will you be jailed for it? No way. Not when it comes to online payday loans Texas at least. The creditor may threaten legal action, but they would never follow up with it because he law does not provide for it.
Don’t default on payday loans online texas
- Talk to Your Creditor
For a payday lender, their intention is clear. They will start to try to collect as early as 5 am on the due date. They will keep trying throughout the day if they find that the account does not have sufficient funds or has none at all. You already know that you cannot afford to pay your mortgage and repay your installment loan. The smart action is to talk to your lender regarding different payment and financing that are available for online payday loans Texas. They are not all money and no heart, (well, they are), but you can let them know in advance you will not meet your obligation. This could save you the hefty charges that start accumulating as soon as you fail to pay on the due date. The law dictates that lenders be fair in their dealings, and so you have a right to be heard.
- Extend Your Repayment Period
With your lender in the know, you can discuss an extension. Usually, Texas payday loans have a limited time frame, which is the difference between the day borrowed and the nearest pay date. If you speak with your lender way before the deadline, you could negotiate an extended payment plan (EPP), which could buy you a little time. It could also protect you from the hefty penalties after the due date. You will have to qualify for the extension through the lender’s method, but that should not be so hard if you have never defaulted before. Falling behind on installment based financing can have some consequences. With most short term financing it’s going to be expected that borrowers will default from time to time. However, be vigilant in you communications with your online lender. To be on the safe side, have all your communications and agreement in writing so that they do not go back on their word.
- Talk to a Debt Counselor
There are many debt specialists in Texas, who know the law in and out and could get you out of a sticky situation that involves Texas payday loans. If you are going nowhere with your request for an extension from your lender, you could have a lawyer handle it for you. They will use legal means to negotiate an extension on your behalf.
- Seek Protection
This option should be a last resort, but you can file for bankruptcy if you really cannot pay your installment loan or Texas payday loans. Filling for bankruptcy not only gets the bad debtors off your back, but it also gives you a clean start. It will, however, show on your financial reports, and could ding your credit scores, so it would be best if that remained a last resort.
The law does not provide for jailing if you default your payment, but that does not mean you cannot be sued for online payday loans texas that fall behind. A bad debt collector will nag you with so many calls and home visits (both day and night) that you feel like losing your mind. If you can pay, negotiate a payment period, pay off the principal and a percentage of the interest, and then get your life back. Take stock of your finances once you have paid off the loan and are no longer dealing with the Texas installment lender. Most Texas installment loans and payday loans are easy to get but much harder to pay off!