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Sdang47

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Can pay day loan balance go up
Hi. I took out a couple payday loans couple years ago all still at the balance of 315 which I am going to pay off next week except one check into cash says I owe them 8000 from a payday loan of 200 something can they do that or do they have to stay at the balance of 315 it been three years

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Thats a whole lot of interest

simple answer is YES!, they can and will charge you the interest.   Preditory "Payday loans" can have interest rates of up to 800%  Yes, thats not a typo....800% so yes, it could have gone from $200 to $8000 if it wasn't paid off for a couple of years.  The reason they are called payday loans, is because they are supposed to be paid off when you get your next check on payday. Sounds like a very expensive lesson in finances.  

Good luck 

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Unless you are very wealthy can can easily pay the 8k, I advise you to not contact them and check the "statute of limitations" in your state to see if they can still sue you for the debt. This is one of those accounts you may be best to just let age off of your credit reports. Check your state laws to make sure that the amount they are charging is allowed as many states have caps on what lenders can charge. Be careful here and DO NOT enter into any payment arrangements on this debt as that can restart the "statute of limitations" and then you could be legally back on the hook for the full amount. Time spent reading is in order here, read as much as you can on this subject and all other credit subjects, it will help.

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