What Can I Do If I Cannot Pay on Time?

I Can’t Pay Back My Payday Loan on Time.

Do you know the most common problem people have when taking out a payday loan? Even for the most experienced payday loan users, it’s getting the loan paid back on time. Many people don’t exactly understand what they’re doing when they take out a payday loan. In essence, they are borrowing money from themselves. When you take out a payday loan, you’ll have a short period of time to pay back the lender, two weeks or less usually. For most people, that money will come from their next paycheck, but what happens when they need the majority of the money from that paycheck? That’s when they have trouble paying the loan back in time. It’s a common, but difficult situation as you’ll either have to take out another payday loan to cover it or face a multitude of late fees and non-sufficient funds fees. Your lender will almost certainly charge you late fees and your bank may as well if you you’re the lender a post-dated check that bounced. However, if you act early enough, you may be able to save yourself from taking out another loan and avoid the fees.

What Can I Do?

While not being able to pay back your payday loan can be stressful and can hurt you financially, you may able to work out a plan with your lender. As soon as you know you definitely cannot pay back the loan by the due date, you should contact the lender immediately. Talk to a customer service representative or manager in charge of collecting the loan and tell them about your situation. If you can manage to get the money within a few days, just ask them for a short extension on the due date. But if it will take you several weeks or longer to get the loan paid back, you should probably ask if you can work out some type of payment plan where you can pay the loan off in installments. Often times, the lender will be willing to work out a plan in order to get their money back and create a good relationship with the customer that might bring them back next time they need a loan. Keep in mind that the lender may ask that you pay more interest or some type of fee for accommodating you. Either way, it will surely be less than the late fees you could face from the lender and your bank for not paying back the loan. So the general rule of thumb: if you’ve got a payday loan due and can’t pay it back on time, at least contact the lender to see if you can work something out. It shows you’re trying to pay back the loan and you might be able to avoid some costly fees.