Sometimes, we are making bad decisions that can result in unplanned credit loans, that will affect our credit score in the future. But, even those people with low credit scores sometimes need to borrow money for something. According to littleloans.com, the bank can offer specially designed conditions, following your credit history, so they can determine if you are eligible to take that credit, and your ability to pay it back, based on your current situation and circumstances. But, keep in mind that you can’t expect big credits in cases like this. The loan amount can start from 100 British pounds in the UK, and go up to 10,000 British pounds, with different repayment terms. On the other hand, a bad credit score doesn’t mean you are not able to take a loan, but it will be very difficult waiting for it to be approved by the bank.
Sometimes, people who weren’t eligible in the past can be now, especially if they have a different job, and their financial situation is much stable than before. That’s why the banks need all those details, and they can be even boring asking too many questions, but in the end, they have to borrow that money and be sure the client will make the payment right on time.
Another thing you should never forget about is that the loan debt is very difficult for your budget and you can face a lawsuit if you skip the payday. The bank or the lender can threaten to sue you, and they have a complete right to do that. Sometimes, they can even ease the conditions, giving you a few extra days to complete the payment. And we know how scary and unpleasant is to know that you have debts, but you can’t really do anything to fix those things up.
Yes, but can they take me to court?
They can! The payday loan company has a full right to file a lawsuit and take you to civil court. But, in most countries around the world, they can’t take you to criminal court, which means you can’t go to jail if you don’t pay the payday loan on time. On the other hand, they can sue you, but most of them won’t, because your debt is getting bigger, and after some time, you will be able to make an agreement with them, which seems like a crime, but practically it isn’t because they already charged enough money, to “forgive” you some part of the debt.
Surely, the best-case scenario is to be always on time with the monthly payments, and don’t put yourself in a situation to be taken to court, because it will once again make the credit score worse, leaving you unable to borrow money in the future.
What will happen if I can’t pay off the loan?
First, you have to be honest with the lender, so they can check the conditions, and see if they can wait, or how long they can do that until you complete the payments. Also, some fees may be applied if you set for late payments. Some people are authorizing the lender to charge money automatically from their account, no matter what type of income they receive.
In this case, a bank loan can be helpful, but our advice is to contact a legal expert or hire a lawyer, so you can both see what you can do.
Another solution is to define the conditions with the lender. You can sit together, and see how things are going. Then, set the rules, and sign the agreement, making sure you won’t be late next time. Keep in mind that some changes can include new fees, but the new plan is free of charge.
Skipping to repay a payday loan is not a crime nor fraud
But it can cause legal consequences for sure. Most people who lend money can offer different conditions because they can charge additional fees that can bring them bigger profits. Also, they can be mean and can say they will sue you, but you always have to know that you can’t go to jail. But, it’s a civil obligation to pay your debt which means you can end being sued in civil court – and as we already said, the civil court can’t send you to jail. Anyway, they can set a deal between you and the lender, to meet the requirements and manage to pay the full amount of your debts until the deadline they provide.
So, the answer to the topic question is that you can be sued, but you can’t end in jail or prison if you don’t pay the loan. If the lender treats you, you need to call your attorney, so you won’t end up with other debts for the lifetime.
Negotiation terms
Lenders can charge automatically from your account if they are authorized for that. But when you can’t pay it on time, it’s better to tell the lender, and they are usually open to negotiate the terms. There is some trick you can use to set for better conditions, but keep in mind that experienced lenders already know them. Avoid lying, so you can prevent threats and lawsuits. All the agreements that are a result of the negotiation process should be written on paper, so they are “sealed” until another change applies.
Is taking another credit to close the previous one a good idea
No, don’t you ever do that. That’s a loophole that you can’t easily get out of it. No one wants to take new loans to pay the older ones. In some countries, it’s considered a law violation. It’s a trap for the lifetime, because you will anyway have to pay all of them, but you must play the things smartly. Getting in a loan cycle will only add new fees, and you will end up spending more money than the regular payments are worth.
Plan the expenses smartly, and don’t jump into lifetime credits, thinking that it will end someday.
