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Dire Consequences of Defaulting Payday Loans

May 31, 2012 | Comments: 0 | Views: 129

When faced with emergency economic problems, we are quick to resort to these payday loans without even stopping to ponder on whether and how we will be able to repay the loan. It only dawns on us when the damage has already been done with no room to go back. Some people go for these loans when they are fully aware that their budget cannot accommodate the amount that has to be repaid. This has brought painful experiences to some people who had to learn it the hard way.

Some consumers are reasonable enough and make alternative arrangements when it is not possible for the borrower to repay on time. These alternative arrangements however are not anything near to a solution to your problem. Why is this so? The rates given are even higher and the penalty fees must be paid in every two weeks. This is the last thing you will need to live within your budget as it will simply not work. This makes one depend on debt for month to month finances hence negatively promoting your individual economic growth.

Other consumers have strict principles and they are most likely to file for a lawsuit against you in order to reacquire his money. This will force you to attend court summons and since you will most likely be on the wrong, the judge will make a ruling against you which will surely force you to repay the loan regardless of you economic status. Not all of us can be able to stand the embarrassment that these lawsuits bring along. Certainly it's not good for once image to be openly tainted in public in front of family members and friends.

Defaulting will also give you a bad financial credit record. It is very clearly known how hard it is to get financial help with these bad credit records. Who will you now turn to in times when the immediate circumstances in need of financial assistance arise? In today's world, no man is ready to risk losing his money in the name of a loan after seeing the bad credit records.

Other payday consumers whose businesses are illegal are more likely to turn to constant threats and violence so as to recover their money. These money lenders are aware that they cannot hold a legal battle hence the need to take matters into their own hands. These consumers can even go to the extent of hurting you or a loved one.

All these situations can be prevented. It's our responsibility to face our bent actions together with the consequences they come bring. If one is not sure if they can pay the loan then simply don't apply for it. There are many alternatives one can go for. Let's take caution as a primary virtue before getting ourselves in trouble that can be simply avoided.

Source: EzineArticles
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