Going to jail for not paying a loan?  And you thought debtors jails were ancient history!  The truth is that for many loans you can not go to jail for failure to repay.  You can end up in court, but jail time is not a punishment for most debts.

The exception to this is a payday loan.  The reason is that payday loans are secured with a check that you write and endorse.  It is a post dated check, but it is still a legal check.

Bad Checks Can Equal Jail Time

Most states have laws that make writing bad checks illegal.  Depending on the state, you could end up doing jail time if you default on a payday loan so tread carefully with payday loans!

This is a prime example of why every loan, no matter how small, needs to be taken seriously.  It would seem silly to end up in jail for something you could have prevented by being responsible and budgeting carefully.