What to Do if You Can't Pay Back Your Payday Loan
Most people who take out a payday loan believe that they will be able to pay it back when the time comes. However, sometimes something happens and this isn’t possible. What should you do if you can’t pay back your payday loan on the due date? Instead of just ignoring it and letting it go past due, you need to contact your lender to make arrangements.
Payday loans are considered short term loans that can help you in a real financial crunch. They are intended to be smaller amounts of money loaned for short periods of time. It is important that you pay the loan back on or before the due date to avoid problems or complications as well as additional fees and interest. However, if the situation arises that you are unable to pay back the loan by the due date, there are steps you can take to try to rectify this situation.
The first thing you should do if you can’t pay back your payday loan on the due date is to contact your lender and tell them the situation. They will be able to give you the options that you have in a case such as this.
Most financial institutions will work with you if you contact them with the fact that you are unable to pay. It’s also important that you tell them as soon as you find out you are unable to pay. The longer you wait, the more problems you will have. The sooner you tell them that you aren’t going to be able to pay back your loan on the due date, the more like they will be able to help you.
There are some situations where you can get an extension of your payday loan. In these cases, the due date will be changed to a later, future date and additional interest will be applies. Usually there will also be additional fees for the extension and possible processing fees for the paperwork involved in changing and extending your due date for you.
Some factors that will determine whether or not you qualify for an extension of your loan due date are:
- How much you borrowed
- Requirements of the lender
- Whether or not you have already extended
Sometimes you can find out quickly whether or not you qualify for a loan extension and other times there is a longer process involved. This is why the sooner you tell your lender you are unable to pay, the better it will be for you.