Importance of Repaying Your Loan

| October 28, 2011

October 28, 2011 ( Nowadays, payday cash loans have become a great avenue to get the badly needed cash that one needs in times of financial emergencies. With not too strict instant cash loan requirements unlike banks, cash advance loans providers have became a haven for those who are in dire need of cash.

However, with advance cash loans providers like payday loan Australia-based provider, Cash Advance doesn’t require tons of personal data and a proven credit history. Though they do credit history check, the credit history doesn’t have to be blemish free for Cash Advance may still approve your loan even if you have a default. In most cases, loan approval is granted within 24 hours. However, it cannot also be denied that taking out an instant cash loan still entails risks. This is experienced particularly when one doesn’t repay their payday loan on time, where one will suffer financially appalling consequences.

Importance of Paying On Time

It is extremely important that you pay your loan payments in full and according to the agreed repayment schedule. Though payday loans can be extremely useful in times of financial difficulties, bear in mind that interest rates on a payday loan are higher than with other types of loans.

Typically, payday loan companies will require that repayment will be done in some specified amount of time (usually no more than one month) and you must ensure that you can make repayment otherwise the money will be collected in other ways. Also, some companies will require that you submit collateral that they can seize if one misses on repaying.

Likewise, aside from accruing on interest, you will also be penalized or a penalty fee will be charged to you when you miss repaying on time.

payday-loans Moreover, if you don’t keep up with your loans, you could end up in default – a state of existence with very serious consequences as the loan provider can take action to recover the money you owe like suing you in court where you would need to pay legal fees.

Another consequence is you could end up facing criminal charges if you have issued a post dated check for the loan repayment and there are no funds available in the checking account on the day of the repayment date. There is a law against writing a bad check, and punishment can include hefty fines and imprisonment.

So now you can see that it is really important to repay your loan! For, if you don’t, consequences could be quite severe!


Category: SmallBiz News

Comments (4)

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  1. Liz says:

    As a borrower we are obliged to pay our loans and in fact this is for our own good also. If we don’t pay our loans there’s a huge possibility that our credit score would be affected and once you have a bad credit score you will hardly get another loan except if you can find a loan lender that can offer you loan even though you have a bad credit. It’s a very important task for a person especially for a loan borrower to have or either maintain a good and efficient credit score all the time.

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