Are Payday Loans Legal in America? Payday loans are unsecured debts that often come with high-interest rates. However, they are quick and an easy way of accessing money up to $1,000, especially during cash shortage. People with low income use these cash advances for various purposes including paying outstanding bills, medical expenses, fixing a car or for emergency travels. As the name suggests, these loans need to be paid back by the next paycheck day.  Everything sounds fine so far….

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When a Debt Collector Comes Between the Borrower and the Payday Lender Payday loans are simple ways of securing finance in between salary days with quick funding. These short-term financings need to be repaid by the next paycheck day. The repayments can be done by an automated clearing house (ACH) system –where money gets automatically deducted from debtor’s account on the due day– or the borrower can write a check in the favor of the lender. If a borrower does…

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Can Payday Loans Be Included in Chapter 7? Before knowing if a payday loan can be included in chapter 7 of the US bankruptcy code- or popularly “chapter 7”- it is important to know what the US bankruptcy code and its chapter 7 are. United States bankruptcy code, is a set of rules regarding bankruptcy in America. It is also called “Title 11 of the United States Code”. It has 15 chapters, and chapter 7 talks about liquidation and bankruptcy….

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When Wage Garnishment Becomes a Reality Defaulting a payday loan does not always lead to wage garnishment. What happens if you don’t pay back your debt is another topic. However, one thing is certain that if the lender is recognized by the state, and it wins the legal case to garnish your wage in order to recover the lent money, wage garnishment becomes a reality. In that case, your employer, while obeying the court order, would deduct a percentage of…

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Does Credit Rating Impact Your Borrowing Ability? Credit rating is done by credit bureaus, namely TransUnion, Equifax, and Experian, although there are secondary rating agencies that also do it. They basically prepare a detailed report of the borrowing habits of people- how they deal with debts. On the basis of that, they give them scores which could be anything between 300 and 850. If people pay off their debts on time, then that is considered to be a healthy credit…

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The Chances of Getting Arrested If a Payday Loan is Not Paid Debt collectors, and even the payday lenders themselves, sometimes threaten borrowers over the phone that they would be arrested for not paying back their payday loans. While it is a way to recover the money by making the borrowers concerned about the consequence of nonpayment, is it really possible? Before that, let us be clear that only nonpayment or delay in scheduled payment is not the reasons why…

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If You Do Not Pay Back Your Payday Loan On Due Payday loans are quite simple products in the lending business. Whenever someone needs urgent money, can apply for a cash loan online and get one without any credit check within a day; sometimes from lenders such as EZPaydayCash on the same day. At the time of application, the borrower obliges to pay back the principal by the next salary day along with fees and interest amount. Once the payment…

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Let’s Know If Payday Loans Can Damage Your Credit Score A credit score of a person is a numerical representation of his credit status which ranges between 300- 850; higher the better. It is reflected by the credit reports prepared by the credit bureaus such as Equifax, Experian, and TransUnion. There are other special credit rating agencies present too which keep the credit track of borrowers recorded. While scoring a payday loan credit score is not important. Financing companies do…

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Measuring How Costly a Payday Loan Is A payday loan is a short-term small-dollar loan that is used to address emergency cash need and is supposed to be paid off by the next payday. Since it is a better alternative than any other monetary solution, a payday cash advance is costlier than those others. In that regard, it is quite understood. However, what are the elements that are associated with a payday loan that make it costly? What is the…

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Will You Go to Jail If You Do Not Pay Your Payday Loan? Did you default your payday loan and fear that there might be legal consequences including a possibility of going to jail? Or is it your lender threatening you over the phone that you would be going behind the bars unless you get debt-free? No matter whatever the reason is, it is very important to get this question answered and be sure what consequences you are likely to…

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