If you have reached a stage where you can’t pay off your no credit check loan and you have got yourself trapped in a vicious circle where you end up accruing more debt, then it is a terrible state to be in. But don’t lose heart. Not everything is over. There are still quite a few options that you can explore. But, you need to plan ahead, stop taking more debt and start thinking with a clear head. You will also have to stop binging out or make purchases that you can stall for the moment. This is a period which requires courage and sacrifice. Explore your options. There are options like iva, which helps greatly in reducing your debt. The internet will give you more.
First, you can assure yourself that you are not the first or the only person who finds himself in this kind of mess. Many of your compatriots take payday loans for something as simple as buying food to paying a single mortgage payment or auto loan or to pay tuition fees at the school of their children and believe it or not, there are also a few who take payday loans to pay off other payday loans!
Why are payday loans dangerous if you don’t understand them well?
Payday loans are short-term and quick loans which can be taken for relatively small amounts. But, what most people don’t understand is that it is one of the most expensive ways of borrowing money. The annual percentage rates could go up to 400-500% or even more.
You have to not only pay the principal on your payday or any other day as agreed, but also pay a fee. Now, if you fail to clear off the loan, the lender would charge an additional fee and the loan would keep rolling and very soon, you would find yourself neck-deep in debt. The fee is not used to amortize the loan and so the debt never reduces even if you continuously pay the late fee.
Options that you can explore if you can’t pay your payday loan
1. Talk to the lender: The first mistake that many borrowers make is that when they realize that they can’t repay the loan anymore, they try to immediately cut all modes of communication with the lenders. What they don’t realize is that under certain provincial laws in Canada, a creditor is obligated to help and forbear a person who has borrowed money from them and make every effort to come to a reasonable agreement so that an arrangement can be made under which some concessions are made to the borrower, making it easy for him to pay up the loan. Even if the lender plans to take any action, it has to be proportionate to the loan amount and can’t be drastic.
2. Try to get a repayment plan: If you feel that it is impossible for you to pay the normal loan amount under the current situation, you should try to get into an agreement with your lender who offers a reasonable plan for repayment of the loan. Under this, the time horizon can be increased and/or some additional costs and interests may be waived off as long as you clear the minimum amount due. The technicalities will have to be worked out together.
3. Take help from a debt advice organization: There are quite a few free or non-profit debt advice organizations in the various provinces of Canada which provide legal guidance to people free of cost or for a token fee. They also negotiate on behalf of their clients with the debt collection agencies. However, if they want a hefty service fee, you can steer clear. Credit Counselling Society and Credit Canada are two such organizations.
4. Only deal with reputable companies: Cashco Financial is a great company that operates across Canada. They believe in giving credit to help people elevate their personal finances. Check out their website at www.cashcofinancial.com for a ton of interesting articles and stories about who they are and how they can help you. Recently, Cashco introduced a flex loan product that can consolidate debt and rebuild credit scores.
Hi there! I am Emily Evert, the owner of Emily Reviews. I am 28 and live in a small town in Michigan with my boyfriend Ryan and our two pugs. I have a large family and I adore my nieces and nephews. I love reading memoirs, and learning about child development and psychology. I love watching The Game of Thrones, Teen Mom, Sister Wives and Veep. I like listening to Jason Isbell, John Prine, and other alt-country or Americana music. I created Emily Reviews as a creative outlet to share my life and the products that I love with others.
Thanks for sharing this information and the link,i will be telling family and friends about this.You really never know when hardship can happen.