What Options Do I Have for Repaying my Payday Loan Debts?
Payday loan debt may be paid off in a variety of ways. As previously said, the first option is to attempt to write off what you owe. With an IVA, you may write off large sums of debt while getting your other obligations under control.
There is also the option of “payday reclaim.”
What is Payday Reclaim, and how does it work?
Wonga, the biggest payday loan firm in the United Kingdom, was destroyed, and payday reclamation companies sprang up in its place. The Financial Ombudsman Service received 130 percent more complaints regarding payday lending companies between 2018 and 2019.
Payday reclamation companies attempt to recoup funds from payday loans that were not properly marketed. Regulations, on the other hand, are more stringent. If you have borrowed more than you can repay, you may be entitled to a refund.
IVAs are an excellent method to safeguard your assets.
What happens if you default on a payday loan?
If you don’t pay your payday loan on time, your lender may increase your interest rate or charge you late penalties. The payday loan company may take money from your bank account via a “continuous payment authority” method. Of course, if you don’t have the money to make a repayment, you may be forced to use your overdraft.
If the payday loan was guaranteed by a guarantor, the supplier may deduct funds from your account. In extreme instances, a collection agency may be contacted by the lender to collect the debt.
Payday loans may become more expensive if they are not paid on time.
What can an IVA help me with in terms of repaying my payday loan debts?
Payday loans are also eligible for inclusion in an IVA. You and your lender have entered into a legally binding agreement. This is a contractual agreement between you and your lender. It attempts to pay off as little debt as possible while maintaining a manageable monthly payment schedule.
An IVA may assist you in paying off your debts.
Repayments on payday loans
Payday loans are not something that can be repaid in a single day. If you don’t renew your IVA within five years, you won’t be eligible for debt forgiveness. The IVA is still in place. Interest rates have been suspended since the IVA has not been paid.
This implies that your payday loan debt will not grow.
Let’s speak about what we can do to assist.
Payday loans are something we hear about nearly every day. Those who have sought payday loans and are presently in debt are the most likely to hear about them. We can assist you.
Please contact us if you need private counsel. We can talk about your payday loan and see whether an IVA is a good option for you.
Please assist me with my debts.