What Can You Do If You Can’t Pay Back Your Payday Loan on Time?

Sometimes, despite your best intentions, a set of circumstances will arise that mean that you won’t be able to repay your payday loan in full on its due date. When this happens to you, it is important to take immediate action. Here’s how you can get help with payday loans if you run into financial difficulties.

Avoid a Late Payment or Returned Check Fee

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 the lender immediately. If you do not do this, you will have to pay a late payment fee if the lender is unable to make an electronic withdrawal of the full amount from your checking account.

Alternatively, if you have left a check with the lender, you will have to pay a returned check fee after your check has bounced. In both cases, your bank may also impose fees on top of those charged by the lender.

Late payment or returned check fees are unnecessary expenses and can be easily avoided 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 fortnightly repayments. This would give you a little breathing space and more time to repay the loan.

It is likely, however, that the lender would impose an extra fee for converting your payday loan to an installment loan, as well as extra interest because you would be borrowing the money for a longer 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 loans lender and agree on a solution.

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Payday Consumer Notice:

APR

The APR of a payday loan varies in each state and depends on the lender, the advance amount, fees and terms of the transaction. The APR in our network of lenders can range from 265.36% to more than 700% on 14 day terms.

Implications of non-payment

Implications of non-payment vary from lender to lender and by state regulations. If you are unable to repay your loan you may have one or all of the consequences listed below depending upon the terms of your lender. Fees may include but are not limited to: insufficient fund fees, administrative fees, late fees, non-payment fees, court costs and legal fees.

Collection Practices, Credit Score Impact

Payday Loans are due and payable in full in one payment at the end of the loan term, unless the Lender offers renewals or other repayment options. Make sure to review the terms and conditions of your lender if you fail to pay on time.

  • Late payments of loans may result in additional fees or collection activities, or both. Each Lender has their own terms and conditions, please review their policies for further information.
  • Non-payment of credit could result in collection activities and your account could be turned over to a collection agency. Each Lender has their own terms and conditions, please review their policies for further information.
  • Failure to pay your loan on time could result in your lender reporting the delinquency to a credit reporting agency. This could result in the lowering of your credit score which could make borrowing more expensive in the future.

Renewal Policy

Renewal policies vary not only by lender but also by state regulations. Every Lender has their own renewal policy, which may differ from Lender to Lender. Renewal fees vary by lender. Please review your state regulations and you lender's renewal policy, terms and conditions.