3 Tips on How to Repay a Payday Loan When it's Due

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Getting a payday loan can be the perfect solution for a financial money crunch, but repaying the loan when it is due is not always that easy. If you have a payday loan that is due soon that you cannot afford to repay, you will need to take action before its due date. There are several options you have if you cannot repay it on time, and here are some tips to help you find a way to get through this.

Ask For an Extended Repayment Plan or a Rollover

The very first thing you should do if you do not think you will be able to repay the loan is call the lender. Payday lenders automatically expect to receive the full payment of a loan when it is due, but they are willing to work with borrowers that cannot repay the full balance owed. There are two options they might offer to you in this situation:

1. Rollover—A payday loan rollover essentially involves paying off the old loan and creating a new one. When this is done, you will incur new fees, but you will get an extension on the due date of the loan.
2. Extended repayment plan—A better option, if available, is an extended repayment plan. This does not rollover the old loan, but instead it creates new terms for repaying the loan. You might be able to work out terms that are affordable for you, and using this option might be cheaper than rolling over the loan.

If you fail to notify your lender before your payment is due, they might automatically try deducting the amount you owe out of your checking account. This will end up costing you extra money, because both the lender and your bank will charge you fees if the payment does not go through.

Borrow Money to Repay It

If you really do not want to extend or rollover your payday loan, you might want to find a different way to get cash to pay off the loan. You might be able to do this by borrowing money from a friend or relative, or you might have to go to a bank to see if you can get a personal loan.

Another option is to sell something you own to raise cash. After doing this, you could then use the proceeds to repay the loan. The benefit of finding a different way to pay off the loan is that you may not have to pay as much money in fees and interest.

Contact a Credit Counseling Firm

Consider contacting a credit counseling firm. If you not only owe money for a payday loan, but also owe money to other creditors, it might be wise to get help for your debt problems, rather than keep owing money. Credit counseling firms can help almost anyone that is stuck in a debt trap, and this option offers several benefits, including:

• It may freeze all interest and fees on your debts.
• You will get to work out a repayment plan for all your debts, and it will be one you can afford.
• It will stop all phone calls and letters from debt collectors.

Using a credit counseling firm is a great way to get on the right track financially, and this is a great solution for anyone struggling to repay debts.

Before you do anything, you should contact your payday lender to find out what options are available. Using payday loans is a great way to get by during emergencies, as long as you have a way to repay the loans you take. To learn more, contact your payday loan lender like EZ Money.

28 September 2015