Sometimes, despite your best intentions, it may happen that you won’t be able to repay your payday loan in full on its due date. When this happens to you, it is a smart move to take immediate action. Here’s how you can get help with payday loans if you run into financial difficulties.
Avoid a Late Payment Fees
If you find out that you will not be able to pay back your payday loan on its due date, it is important to inform your lender immediately. If you do not do this, you will have to pay a late payment fee.
Late payment fees are unnecessary expenses and that you can easily avoid if you explain your situation to your lender before your loan’s due date. If you do this, a reputable lender will work with you to find a solution without imposing late payment or returned check fees.
Renew or Roll Over Your Payday Loan
If you are not able to pay back your payday loan in full, you may be able to renew it for two more weeks or one month. In this case, a renewal fee may be payable on top of extra interest and the original amount borrowed. Ask your lender for a breakdown of all the charges that will apply before agreeing to roll over your payday loan.
Convert Your Payday Loan to an Installment Loan
Some payday loan lenders may allow you to convert your payday loan to an installment or personal loan lasting for a few months. This would mean that the amount borrowed and the total interest charged would be divided into equal monthly repayments. If you are paid every two weeks, you may be able to arrange to make bi-weekly repayments. This would give you a little breathing space and more time to repay the loan.
Keep in mind that the lender may impose an extra fee for converting your payday loan to an installment loan. There will also be more total interest because you would be borrowing the money for a more extended period.
The interest rate on an installment loan may also be different from the interest rate on a payday loan, so ask for a written schedule of all the interest and charges that will be imposed during the term of the installment loan.
If you are having trouble finding the money to repay your loan on time, help with payday loans is available. Do not ignore the situation and hope it will go away by itself. Talk to your payday loan lender and agree on a solution.