Everyone knows that it is easy to apply for a payday loan online. Due to this not everyone thinks about the repayment at once. In order to make a well-informed decision getting a payday loan, you are recommended to learn more about the rules of its use and the repayment options available. Only the responsible approach to getting a short-term loan will help you benefit from the payday loan application.
If you are familiar with the terms of payday advance use, you must know that you have only one or two weeks to pay the loan back. But what to do if you don’t have enough money to repay the borrowed amount of a loan plus the interest rate on the due date? Here you are offered to learn more about the possible solutions if you can’t make the loan repayment on time.
What Should You Know About the Payday Loan Repayment Process?
Payday loans up to $1500 have been designed to help you cope with some unexpected financial problems, which must be solved as quickly as possible. Nobody knows when emergency can happen. That’s why despite being not the cheapest loan option, fast money online can be very helpful if you are short of time.
Getting a loan you should understand that you are going to use this money for the short period of time and make the loan repayment the same day you are paid. In case you have doubts that you will be able to give money back getting your salary, you are recommended to avoid applying for a payday loan as there is a risk of falling into debts.
If you are sure that no problems will arise on your payday and you will pay money back in full immediately, then you will find it very convenient to repay the loan without going anywhere. The whole procedure of getting money as well as repaying it is automatic.
When you are approved for the loan, you are going to have it deposited and when it is the due date of the loan repayment money will be withdrawn from your bank account. The only thing you need to do is to check out if you have the whole amount to pay back.
What is a Payment Reminder and How You Can Benefit From Its Use?
A lot of lenders nowadays offer such a service as a payment reminder. What is it and how it works? Everything is simple. The main idea of the payment reminder option is to help you not miss the due date of the loan repayment, which often happens with those who are busy with their problems and work and just don’t think about dates at all. If your lender offers you to use this option, you should definitely agree as it may be helpful. You won’t need to look in the calendar during the period of money use.
Payment reminder is a very convenient option that allows to feel free from any worries that you can forget about the payday loan repayment date. To benefit from its use, you should provide your lender with the correct e-mail address.
Check out your spam folder if you don’t get an information about your loan repayment status. The contact information, which you fill out when submit a loan application may be used to contact you in case there is such a necessity. That’s why errors in the contacts may lead to the delays in getting some important information. However, not all loan lenders send reminders to their borrowers. It is up to you to ask about the availability of this option when you are going to apply for the loan online.
Which Questions Should You Ask Your Lender Before Getting a Loan?
Understanding a short-term loan is a key to success. There are several questions that you should ask your payday loan lender before you take a decision to obtain fast money via the internet. Here you can check out the list of the most important things to know in order you can benefit from the use of your loan avoiding any problems on the repayment date.
- How much does the payday loan cost?
- Will the lender extend your loan automatically?
- How is your personal information protected?
- Will you be charged any additional fees for some services?
- How and when will the lender withdraw your loan repayment?
Find out more about your rights and responsibilities before you get a loan to be sure you are aware of all major features of short-term loans online.
This knowledge will be of use if you face any difficult situation or have some misunderstanding with the lender. Due to the fact that there are a lot of payday lenders, knowing your rights you will be able to choose the trustworthy lender.
Which Consequences to Expect if You Miss the Loan Repayment?
It depends on you only whether you benefit from the loan application or regret getting fast money via the alternative lenders. In case you are a responsible borrower who always pays money back on the due date stated in the loan agreement, you won’t have any problems. However, the situation is completely different if you can’t make the loan repayment on the due date.
You should understand that in case your lender doesn’t get the necessary amount of money on the agreed date, he has the right to inform the credit bureau and as a result your non-repayment will damage your credit score. If you are already a bad credit borrower and the low credit rating isn’t the most fearful thing that may happen to you, you should know that this is not the only consequence of the inability to pay money back.
If you ignore the due date of the loan repayment, you risk falling into debt. The lender will have the right to start the court trial in case you don’t make steps forward to the short-term loan repayment. That’s why you should consider your financial situation thoroughly and find out what you can do if some emergency prevents you from the execution of obligations.
How do Collection Agencies Work?
Collection agencies are organizations, where your lender may seek help if you don’t arrange a new loan repayment plan. This is the worst thing that may happen as such collectors are known for using aggressive methods to get money back. They may call you, your friends and relatives demanding to pay the loan back immediately. Sure, that lenders sell your debts to collection agencies only as it is the last chance to have their money back.
If you have been contacted from the collector’s agency, you should check out that it is not a scam. Ask the name of the agency and the check the contact information of the payday lender.
Despite the fact that payday loans are unsecured loans, which means that a lender doesn’t require to provide any collateral for the use of a loan, in case the lender goes to the court he will have a right to seize your property and sell it to cover your debt. You won’t be sent to jail but you will have to repay the borrowed amount of money together with all fees involved.
In order to avoid such serious unwanted consequences you should think about possible problem solutions beforehand. Continue reading and you will discover what can be done if you are on a tight budget at the moment and can’t make the payday loan repayment.
How to Deal with the Situation When You Can’t Pay Your Loan Back Now?
If you have decided to get a short-term loan, you should make all necessary calculations before you make sure you can afford getting a loan till your payday. In average, borrowing 100$ you will have to pay 15-30$ depending on the lender. This is because the annual percentage rate (APR) is up to 400 %. In case you get the loan and finally understand that you can’t pay it back as it is expected, you risk overpaying much as a payday loan is considered to be an expensive loan.
You must have heard about different extension options, which aren’t recommended to be used as you will have to pay the amount of money you borrowed plus the interest rate agreed when you were signing the loan contract and additional fees for the use of certain extension option. However, if the reality is such that you can’t solve your financial problems using any other method, the most reasonable way to avoid the risk being sued in court is to find out how you can extend your loan.
Take into account that extension loan options aren’t available everywhere, that’s why you should ask your lender before you get a loan if such options can be offered in case you can’t make the repayment. In rare cases, lenders make an extension automatic but in this case the loan agreement will contain information about this. Don’t miss it as such details are usually written in the fine print.
Payment in full is the best option to use but if you can’t manage to do this anyhow, then you are offered to consider other available options.
Getting Another Loan to Repay the First One
The first thought that you may have if don’t have enough money to make the full repayment is to get one more short-term loan to repay the first one. However, you should take into account that not all states allow having several loans at once.
Though in some states it is possible to borrow up to three loans at the same time or within the short period of time.
Getting another loan may look tempting but it is not the best problem solution because of the obvious reasons. You should do you best to look for some other ways to make the loan repayment as soon as possible. Don’t get one more loan from another lender to cover the amount you need to repay as you will overpay much more than you have borrowed and such actions increase the risk of falling into a debt.
Rollover Option to Postpone the Repayment Date
In case you have no ideas how to make the payday loan repayment, you can ask your lender about such loan extension option as the rollover, which is available not in all states. The main idea here is to postpone the date of your repayment. This doesn’t mean you will have to pay less, vice versa, you will need to repay the whole amount of money you borrowed plus fees for the monthly rollover.
This option should be considered as the last resort as it is costly. However, depending on the situation, you may benefit from it more than from getting one more loan from another lender. Don’t forget to inform your lender that you won’t be able to pay money back on the due date and ask to rearrange a new repayment plan.
Useful Tips How Not to Find Yourself in Debt
Sure, that it is impossible to plan everything, however, you should try to do your best having control over your budget and vice versa. Here you will find some simple but effective tips how to build your budget to avoid any debt traps.
- Think twice before spending money on something and organize your budget each time you get your salary having a list with the priorities for the period of time till you get income next time.
- Start looking for the short-term lender only after you have already used all possible means of getting money.
- Having decided to get a loan, study all available loan options and learn more about their differences.
- Give preference to payday loans online only if you are sure that you are able to give money back within one or two weeks.
- Choose an installment loan if you realize that a couple of weeks won’t be enough for you to make the loan repayment.
- Read the loan agreement very carefully before you sign it not to be trapped by some unreliable payday lenders.
- Send your personal details only after making sure that the lender guarantees you to keep your information 100% safe.
- Look for the best loan deal after comparing all existing loan offers.
- Ask about the available repayment options before applying for an internet loan with the short repayment term.
- Never borrow money from several lenders at a time.
- Remember the site of your lender and check out the contacts there to be valid.