The Harsh Reality: What Happens If You Don’t Pay Speedy Cash?
Falling behind on loan payments is never a fun situation – especially when it comes to payday loans from companies like Speedy Cash. These short-term, high-interest loans can quickly spiral out of control if you miss payments. But what exactly happens if you stop paying Speedy Cash altogether? Buckle up, because it’s not a pretty picture.
The Debt Collectors Come Knocking
If you miss enough payments, Speedy Cash will likely sell your debt to a third-party debt collection agency. And these guys don’t mess around. They’ll start blowing up your phone with calls, sending letters demanding payment, and maybe even try to track you down in person.
-One Redditor shared their experience: They try to tell me I’m going to have an warrant issued but they’ve been doing that forever this was 5 years ago so dont worry about it man just ignore them.
Ignoring them is probably not the best strategy though. Debt collectors are relentless, and they have a handful of nasty tricks up their sleeves, like…
Wrecking Your Credit Score
Unpaid debts can be reported to the major credit bureaus, leaving a nice big blemish on your credit report. A tanked credit score makes it harder (and way more expensive) to get approved for loans, mortgages, credit cards, apartments – you name it. It can haunt you for years.
Taking You to Court
If the debt collectors can’t get you to pay up, they may decide to sue you for the unpaid debt. If they win the case (which is likely if you don’t show up), the court can:
Garnish your wages – That’s right, they can legally take a chunk right out of your paycheck before you even see it.
Put a lien on your property – Say goodbye to selling your home or car until that debt is paid.
Freeze your bank accounts – Any money sitting in checking/savings is fair game.
As one Avvo user warns, Typically you give them the right to withdraw the money directly from your account in the event that you don’t pay. Yikes.
But I’m Judgment Proof, Right?
Some borrowers think they’re in the clear because their only income is from non-garnishable sources like Social Security, disability, or a pension. Nice try, but debt collectors have ways around this.
Even if your income is technically “judgment proof,” the debt doesn’t just go away. That court judgment can hang around for 10+ years in some states, with interest accruing the whole time. So when you do finally come into money (inheritance, lottery winnings, etc.), you can bet the debt collectors will be first in line to claim it.
-The Vicious Cycle of Payday Loans
Payday loans are designed to trap borrowers in a never-ending cycle of debt. The average APR on a payday loan is a staggering 400%! With interest and fees piling up so quickly, it’s easy to fall behind.
Many borrowers end up taking out new payday loans just to pay off the old ones – digging themselves into an even deeper hole. Before they know it, they owe thousands in rolled-over payday loan debt.
As the Speedy Cash website itself states, Money is hard. Credit is even harder. That’s where we come in. Yeah, no thanks.
Escaping the Payday Loan Debt Trap
If you’re struggling to pay back a payday loan from Speedy Cash or any other lender, you do have some options besides just not paying:
Debt Settlement
Believe it or not, debt collectors are often willing to accept a lump sum payment for less than the full amount owed. After all, getting something is better for them than getting nothing.
Sites like SoloSuit and SoloSettle can help you negotiate a debt settlement and get it documented properly. They’ll even handle the shady debt collector tactics for you.
Bankruptcy
For borrowers who are completely overwhelmed by payday loan debt (and other debts), bankruptcy may be an option. Declaring bankruptcy allows you to eliminate certain debts entirely or at least get on a court-approved payment plan.
The drawback? A bankruptcy stays on your credit report for 7-10 years, making it extremely difficult to get approved for new credit or loans during that time.
Debt Management Plan
If bankruptcy seems too extreme, consider a debt management plan instead. These are offered by certain non-profit credit counseling agencies. They’ll work with your creditors to get fees and interest rates reduced so you can pay off the debt more affordably.
The catch is that you’ll need to close all your credit accounts and live without new credit for the duration of the plan (3-5 years typically). But it’s better than having your wages garnished!
-How to Avoid the Payday Loan Trap
The absolute best solution? Avoid taking out payday loans in the first place! These predatory loans are incredibly risky and should only be an absolute last resort.
If you’re in a financial bind, explore all other options first:
Ask your employer for a paycheck advance
Borrow from friends or family
Get a side gig or temp job for extra income
Ask creditors for payment extensions or due date adjustments
Look into personal loans or credit cards with way lower interest rates
And if you’ve already fallen into the payday loan debt cycle, get help ASAP before it spirals out of control. Talk to a non-profit credit counselor and explore all your debt relief options.
The Bottom Line on Not Paying Speedy Cash
Not paying your Speedy Cash loan is a surefire way to make a bad situation even worse. Debt collectors will hound you relentlessly, your credit will take a major hit, and you could even end up getting taken to court.
While it might seem like the easy way out, just not paying is actually one of the worst things you can do. It’ll catch up to you eventually – with tons of extra fees and interest piled on top.
The smart move? Take action as soon as you realize you can’t make your Speedy Cash payments. Reach out to them, explain your situation, and work out a payment plan or settlement. Ignoring the debt won’t make it go away – it’ll just cost you way more in the long run.