How to find out if you owe payday loans

Wondering if you have an outstanding payday loan balance? If you haven’t heard from your lender recently, you may be unsure of the status of your payday account. Fortunately, there are several steps you can take to learn more about if you owe payday loans. And once you know how much you owe, you can take care of your balance once and for all.

How Do I Find Out My Payday Loan Balance?

Knowing your pay day loan balance is essential when creating a successful payback plan. Once you know how much you owe on your payday loan, you can then work towards knocking out that balance and moving on financially. Below are the most common ways borrowers can access information regarding their payday loan.

Check Your Online Account

Many payday loans are available online these days, meaning borrowers can view all their loan details virtually. If you received your payday loan online, you should have access to a virtual account where you can see all of your personal loan information. Via your lenders’ online payday loan portal, you should be able to view info like:

  • Original loan amount.
  • Scheduled loan term.
  • Current interest rates.
  • Current balance.
  • Payment history.

Talk to Your Lender

If you went with a brick-and-mortar payday loan, you might also have an online account where you can view all your loan details. If not, you can talk to your lender directly and have a loan agent give you any information you require. You may either visit your payday lender’s brick-and-mortar business directly or call them on the phone to talk with a loan agent.

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How Do I Know if I Owe Payday Loans?

How do you know if you currently have outstanding payday loans? To start, check your mail to see if you have received any invoices or information from your payday lender. Lenders will often send borrowers a congratulations letter once they are finished paying off their loans. If you don’t have any communication from your lender, take a look at your recent financial statements.

Check Your Financial Statements

One of the most efficient ways to check if you owe payday loans is to look at your bank statements and credit card statements. Do you have charges for recurring payday loan payments on your statements? If so, you most likely have a balance. From there, you can check to see what your current balance is and finalize your payment plan.

Use a Third Party App

Another way to check if you owe payday loans is to use a third-party budgeting app. With a convenient budgeting app, you don’t have to spend your own time combing through your bank account or credit card statements. However, keep in mind that you must pay for most of the services offered via these budgeting apps. But, if you are struggling to keep track of your finances, you may find them helpful.

Some popular budgeting apps you may want to look into are:

  • TrueBill.
  • Mint.
  • YNAM.
  • Goodbudget.
  • EveryDollar.
  • Personal Capital
  • PocketGuard
  • Honeydue
  • Fudget.

What Happens if You Don’t Pay Back a Payday Loan?

What happens to borrowers who don’t pay back their payday loans? First, borrowers may be charged with a late fee. At this point, borrowers are usually still able to catch up on their payments, pay their penalty charge, and become current once again on their loan. While the major credit bureaus will still report on the late payment, the effect won’t be as detrimental to your overall score as a loan default would.

After several consecutive missed payments, you may find your payday lenders have sent your outstanding loans to a debt collector. Going into payday loan default can negatively affect your credit report and credit scores for seven to ten years! Once a credit bureau learns that debt collectors are involved with your payday loan, you may find yourself having difficulty finding approval for other financial products in the future.

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Can Payday Lenders Take Me to Court?

Can payday loans take you to court? If you fail to pay back your payday loan, the lender may also send you a court summons. Unfortunately, payday lenders can sue borrowers if they fail to pay back their loans. However, it is against federal law for a payday lender to threaten you with jail time.

How To Get Out of a Loan With a Payday Lender

The fastest way to get out of a payday loan is simply to repay a payday loan. If you are having trouble coming up with a successful payback plan, you can try talking to a financial expert or looking into credit counseling. Your financial counselor may have some helpful advice for you when it comes to rectifying your debt situation.

You may also refinance your payday loan and get a fresh financial start. With a refinancing, you can choose to work with a new lender, receive a new loan contract, potentially get paired with lower interest rates, and even receive additional funding!

How Do I Find a Better Deal Than a Payday Loan?

Fortunately, there are plenty of great funding options out there, so you never have to deal with payday loans. Below are some tips on how you can find the best loan deal.

Financially Plan and Find the Right Type of Loan Company

Before you apply for a loan, think about your funding needs. Are you looking for a small loan to help you get through the week until your next paycheck? If so, a short-term loan may work best for you. Banks, credit unions, and direct lenders all offer short-term loans. However, if you are looking cover larger expenses such as major car repair or home improvement projects, a long-term loan may be suited best for you.

After deciding what your major financial needs are, you can start vetting lenders. You can start by checking out lenders in good standing with the Consumer Financial Protection Bureau.

Check Your Credit Score and Narrow Down Your Borrowing Options

One of the most important steps to finding the perfect loan is to start with attainable options. To ensure you are applying for loans that are appropriate for your financial situation, take a look at your most recent credit reports and credit score. From there, you can start narrowing down which funding types may work best for you.

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Bad Credit Funding Options

Don’t be worried about finding funding if you have less than perfect credit. There are loan types specifically designed to help out people who suffer from a lower credit score.

Personal Installment Loans

One of the most versatile funding options is personal installment loans from direct lenders. Many lenders for personal installment loans personalize contracts to meet the unique needs of each individual borrower. Personal loan agents are often knowledgeable, helpful, and equipped to help you reach your financial goals.

Personal installment loans can offer great benefits like:

  • Competitive interest rates.
  • Personalized payback plans.
  • Flexible terms.
  • Convenient refinancing options.
  • Easy approval requirements.
  • Quick funding.

Cash Advance Loans

For dire emergency situations, you may consider taking out a cash advance. Two places you may be able to get a cash advance are with certain employers or credit card companies. For taking out a cash advance with your employer, keep in mind that you will have to work off the money you borrowed. With credit cards, your cash advance interest rate may be a bit higher than those that come with a regular credit card purchase.

Credit Union Loans

A credit union is a type of financial institution that offers loans to people who meet specific requirements. For example, many credit unions require borrowers to live in a certain area or have a particular credit score in order to qualify for funding.

Good Credit Funding Options

Borrowers with good credit tend to have more financial products than those with lower scores. In addition to all of the funding options mentioned above, borrowers with good credit may also gain easy access to loans with a bank.

Bank Loans

If your credit score is on the higher side (around 700 or higher), you may be eligible for a loan with a traditional bank. Banks have a history of being very strict lenders, meaning they will most likely only accept your application if you have ideal credit and a clean financial history.

Some popular banks that may have a local branch in your area are:

  • U.S. Bank.
  • Chase.
  • Bank of America.
  • Wells Fargo.
  • Citigroup.
  • PNC.
  • Truist.

References:The 8 Best Budget Apps for 2022 – NerdWallet