What Happens When You Can’t Repay a 2000-Dollar Loan?

It’s a sad scenario, but failure to repay a loan of any kind, be it a traditional one, or a quick one, with no credit check required, is something any debtor needs to be prepared for. Quick loans are a special case, because they’re unsecured and, as mentioned above, come with no credit checks. That’s a good thing in a certain sense, since they allow borrowers to take out money they direly need when strapped for cash. Regular lenders often disregard those most in need of money, owing to their poor credit history. Yet, these people, who have made bad financial decisions in the past, can find themselves strapped for bill money through no fault of their own. As such, they apply for quick loans – but what happens to them when they can’t repay a 2000-dollar loan? In the following, we explore some of the most plausible potential scenarios that can result from a failure to repay these loans.

Have the loan roll over

When filing for a quick loan, some debtors will sign a check for the amount of money they take out, plus a lending fee, and leave that check with the lender. They will then cover the check once they are ready to repay the entire amount. This also needs to happen before a pre-determined deadline, which the lender and the debtor both agree on. If the debtor is unable to make the back payment, that loan can sometimes be ‘rolled over’. This, of course, is something everyone needs to check out with their lender, since it’s not always possible to opt for this variant in the event that you can’t pay back a 2000-dollar loan. Extensions obviously also mean larger fees that keep accumulating until the borrower is ready to cover for the entire amount. In a nutshell, the longer it takes you to pay back the money, the larger the debt you will incur.

An even more difficult financial situation

Usually, people who opt for a quick cash loan are those who are already strapped for cash for any number of reasons. Perhaps unemployment has forced them to forgo some bill payments. Maybe they’ve incurred an emergency, unexpected expense. Whatever their reasons may be, chances are they’re already facing some form of hardship; when you can’t pay back a 2000-dollar loan that difficult situation will become no less complicated. That’s why most financial experts encourage potential quick loan debtors to only consider such alternatives as a last resort. Of course, in some cases, it’s impossible to opt for any other kind of loan, since there’s no friend or family member available to lend you that kind of money. In such a scenario, it’s usually a good idea to carefully compare lenders and opt for a reasonably safe solution. This also involves running a background check for potential loan sources, since not all are legitimate.

Ending up with overdraft charges

People who opt for quick loans in the form of payday loans and fail to pay back a 2000-dollar loan or even one for a smaller amount will essentially end up bouncing checks. Having a check bounce repeatedly will not technically affect one’s credit score, since most quick loans don’t rely on credit system checks. However, ChexSystems do track the probity of one’s checks; when this quality cannot be verified, your bank may choose to charge you for the overdraft. What’s more, a spotty ChexSystems record will even land you on a black list for many banks and retailers. And, of course, in the absolute worst case scenario, you might even face legal action filed against you by the lender.

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