Don't Use Payday Loan To Bail Out Friends, Family

When someone gets arrested, it affects family and friends as well. Most of us want to help people close to us, but don’t use a payday loan to do it.

When someone is arrested, he usually has to provide bail to get out of jail. This bail has value and is essentially a promise by the person arrested that he will return to the court at the proper date. If he doesn’t return, the bail is forfeited to the court.

Bail is usually cash or property. Cash is given to the court, while a lien on the property is given so the court can claim it if the person arrested doesn’t show up.

The court sets the amount of value that is required to be bailed out of jail. The amount depends on the severity of the crime and how likely the person is to try to run away and not return.

If the bail is too high for the person to pay on his own, then he must look for help. This is where bail bondsmen come in.

A bail bondsman will accept a percentage of the bail, usually about 10 percent, to guarantee that the person arrested will return to court. This guarantee is given through a bond, which means the bail bondsman will pay the entire bail if the person arrested doesn’t show up to court. The 10 percent fee is not refundable.

A bail bondsman will often require a lien on property as well as the 10 percent fee so that if the person flees, the bail bondsman can claim the property. Of course, if the property is enough to cover the bail, then the person might as well use the property to cover the bail instead of paying an additional 10 percent to the bail bandsman.

Some people are tempted to help a friend in jail by taking out a payday loan to pay for bail or pay the bail bondsman fee. However, this is a bad idea in many respects.

Don’t count on getting bail back in time to pay for payday loan

If you use the payday loan for bail, you can’t count on getting the money back on time. If your friend jumps bail, you won’t get it back at all and then you’ll be forced to pay it back out of your own money in a couple weeks or pay a lot of money in interest.

It would be better to get a bond for the bail anyways because the usual fees for bonds are far less than payday loans, plus you usually don’t have to pay more than the 10 percent unless the trial takes over a year.

If you get a payday loan to pay the bail bondsman’s fee, then you are either paying for it all yourself or counting on your friend to pay you back. Even if you feel like your friend is sincere about repaying you, just remember he has just been arrested and is most likely incurring some pretty large legal fees to defend himself.

If your friend asks for a public defender, this is because he cannot afford to pay the legal fees, which means he probably can’t pay the payday loan back anytime soon either.

In the long run, it is wiser to refuse to take out a payday loan. If he is a true friend, he will understand, especially if you show that you will be there for him throughout this ordeal.