If my loans falls default how much would I have to pay?
I made the mistake of taking out a payday loan from speedy cash for $916. The payout amount to pay cash in full is about 1200. If I stick with the payday payment plan it ends about being about $4000 after fees. My question is if I stop paying it and let it fall default. If I was about to pay off the loan after 2 months of saving but being default. Would I be expected to pay the 1200 or the full 4000. They want 256 every two weeks for the payment plan just to keep the loan open
- 9 months ago
Payday loans are the absolute worst thing people can get. If you don't pay back as promised you end up (like you are finding out) deeply in debt.
Offering to pay off in the future won't help you, since they are going to stick to their contract and soak you.
Your only way out is to find someone to give you a loan and pay off the payday loan. They will certainly sue you for $4000.
- ShayLv 79 months ago
A payday loan usually works by you giving them a check or giving some kind of access to your bank account.
If you go delinquent, they will try to collect by cashing the check or taking the FULL amount of at least 1200 from your bank account that you associated with this loan.
If the check or electronic transaction bounces, then they might sue you for up to the full amount of 4,000.
If they do try to take the money from your bank, then your bank will also charge you fees for a bounced check. It could cause a series of failed transactions and bank fees for other transactions that would have been alright with their transaction.
So - if you gave them any kind of access to your bank account, they will take the money even if you don't show up to make a payment.
You need to CAREFULLY READ their policies and then TALK TO THEM about arrangements for repayment.
- Badge 203Lv 59 months ago
You stop paying you will be sued and you will also have to pay their lawyer fees, court costs (filing fees), default costs, so add another $2000 on top of what you owe now minimum
- JudyLv 79 months ago
Read the paperwork you signed.
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- Anonymous9 months ago
You will have to pay everything you agreed to pay. Now you know why they are ripoffs.
- StooLv 79 months ago
They'll want the full obligation you signed up for. It's best to get out of that as quickly as possible, and then never, ever do this again. If you default, they'll pump it off to collections, which means you won't even get payday loans ever in the future, much less any fairly priced loan. The moment they sell the debt to collections you're not dealing with them, you're dealing with a credit collection agency who will pursue you vigourously and destroy your creditworthiness.
- PLv 79 months ago
If you default they will just take you to court and garnish your wages. You will end up pay more than the $4000 since extra interest will be charged and you will have to pay their attorney fees.