A balance transfer could help you by consolidating all of your unsecured debts into a single account with a lower interest rate and lower monthly payment. What Happens When You Cant Repay a Payday Loan. A payday loan default can lead to a barrage of bank overdraft fees, constant collections calls, damage to your credit scores, a day in court and garnishment of your paycheck.
Dont think it cant happen because you borrowed only 300. If you have a valid, binding, legal agreement to pay that debt, and youre in a state where they can sue you and attach your wages, youre playing a game of chicken that youre going to personal loan no fees, says Bruce McClary, spokesperson for the National Foundation for Credit Counseling.
You have options such as settling the debt for less than you owe or filing for bankruptcy if your debts are overwhelming.
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