I can't afford to pay them. I owe them about $2500.00 and I'm concerned if I don't pay them they will Garnish my Wages. Does anybody know if they will Garnish for this amount of $2500 I owe. This is a unsecured debt.
2006-09-27 04:01:02 · 13 answers · asked by Dan S 1 in Business & Finance ➔ Credit
Unsecured debt can not be garnished.
90% interest is illegal. Every state has usury laws that cap the amount of interest that can be charged. If in fact they are charging you 90%, they can not collect it. Contact your state attorney general's office, and they can prosecute the company.
2006-09-27 04:10:02 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You got a loan - you have to pay it back. Simple as that.
I don't know if they can garnish your wages, you have to read your contract to see if they can, but I've seen wage garnishments for other things like child support, so I don't see why not.
Your agreeing to get a high interest rate (I certainly hope that 90% is an exagerration) indicates that you are a high credit risk and are not in the habit of paying back your loans.
So what would I do if I was in your shoes?
1. Call the company and tell them that I am having trouble making the payments. See if we can't work out a better payment system. Many times they will let you pay less per month, but only if you show that you are willing to work with them.
2. Reduce my expenses so that I can make the payments according to the schedule and then some. Pay as much as I can as quickly as I can. This means even though you have arranged a lower amount to pay in step #1, I are still paying MORE than the original amount every month. If I have difficulty paying as much as is owed, I will pay as much as you can, and call the company and let them know why. Always make a payment every month. Every little bit helps.
3. My goal is to pay off this high interest loan as quickly as possible. If I can find a lower interest rate loan anywhere else, I would pay off the old loan with a new one. And make sure that I pay it. I would see if there is a prepayment penalty. If there is, I would save a $1 on the loan and make sure I pay that at the end of the loan term so I can avoid paying interest, and not have prepayment penalties.
4. Structure my finances so that this doesn't happen again. Live within my means. Stop borrowing money. Pay my bills on time.
You can also try consumer credit counseling agencies, but understand that there are scammers out there.
2006-09-27 11:22:58 · answer #2 · answered by Don't Know 3 · 0⤊ 0⤋
You could have gotten money from a loan shark with a better rate than that. All of these places are a major rip off. Check cashing/advance places have an interest rate of up to 490%. You should avoid these places at ALL costs.
As far a garnishing your wages, yep, it is gonna happen. Probably do something to your checking account as well. Interest will continue to accrue while you are paying this loan off. Get a second job and work this debt down!
2006-09-27 11:13:27 · answer #3 · answered by tallerfella 7 · 0⤊ 0⤋
Usury laws on sky high interest rates are only applicable depending on the state you live in. Do some research on the usury laws for your state and come to a conclusion that way. You need to figure out something pretty quickly because if it turns out that you do owe them, what you owe will pretty much double every month! Itll be 4750, then 9025 etc. Hope you learned your lesson!!!
2006-09-27 15:32:37 · answer #4 · answered by ericasj22 2 · 0⤊ 0⤋
Pay them back as soon as possible. You should not have borrowed the money if you couldn't pay it back. I hope they garnish your money, there are too many leeches like you who think the world owes them something and they don't have to pay for what they take.
2006-09-27 12:14:20 · answer #5 · answered by ? 6 · 0⤊ 0⤋
They may do that, but HOLY CRAP what were you thinking to take a loan with an interest rate of 90%!!!! They will must likely just sit back and collect all that interest. But if you're really in trouble talk to them and work out a payment plan GOOD LUCK!
2006-09-27 11:06:58 · answer #6 · answered by Curious 3 · 0⤊ 0⤋
Th real question is are you going to sue them??
In The U.S. (providing you're a U.S. citizen) they are not aloowed to charge more than 23% (or so) a violation of this constitutes loan sharking and is punishable by prison and or fines. Contact a lawyer quick, you may make some money rather than lose.
2006-09-27 11:09:48 · answer #7 · answered by Huge. 1 · 0⤊ 0⤋
Dont agree with what people are saying telling you to pay it back, it is an illegal amount of interest and absolutely disgusting. Threaten them that you are taking them to court and that they must cancel the loan, make sure you get the facts first and read their terms and conditions carefully.
Good luck
2006-09-27 11:50:23 · answer #8 · answered by rehad 2 · 0⤊ 0⤋
i don't know if they will garnish but i do know they will keep renewing it and you will have to pay the renewal amount which is not applied to the principal. It should all be in the fine print of the contract you signed.
2006-09-27 11:05:19 · answer #9 · answered by Laprincessa1182 2 · 0⤊ 0⤋
I sure hope so. You signed, you owe the money. Pay it. See if you can make arrangements to pay it. Otherwise it is theft. Some states consider it theft and rather then have your wages garnished you can be arrested for larceny.
2006-09-27 11:04:45 · answer #10 · answered by Anonymous · 1⤊ 2⤋