People often panic and opt for a payday loan to ensure they are not falling behind on any bill payment. Even if the loan is sanctioned, they may need more time to get their paychecks. There can be several reasons you cannot repay the payday loan on time. Life can be unpredictable and difficult sometimes. Money Wise understands the struggles you may be going through.
What happens if you do not repay a payday loan on time?
If you have already given your check to the payday lender, your bank account needs more funds for the check to clear. The bank and the lender will both charge you a considerable fee. It means counter-productive, but that is the case with both organizations. The issue also comes when the same check is attempted to be cashed in several times. Each time the check bounces, you are bound to pay the penalty each time. However, most banks do not allow this practice anymore. If there is a check that has bounced, it will be destroyed then and there. This is to protect the customer from such practices because they have become quite prevalent to trouble borrowers.
You must ensure that you have all your bases covered when you give in your check to be cashed by the payday lenders. Try not to make any payments until that check has been cashed in. This is safe from the high-interest rates, the late fee, and the penalties from both the bank and the payday lenders. That is a kind of penalty you cannot afford. This is why it is best to clear your payday loans as fast as possible. You should not take more than two weeks to repay any payday loan. You will be carrying an unnecessary burden on yourself that can turn into a hefty interest rate charge very soon. Therefore, when Money Wise says they are there for you in times of need, they mean it. Only when you need an emergency fund should you opt for a payday loan.
This information is to make you opt for a payday loan and to make you more aware of the different possibilities with a payday loan. However, you can avoid this situation if you ever find yourself in one.
Can you extend the payment period for repaying a payday loan?
Since the interest rates on payday loans are incredibly high, you may not be able to meet the criteria for the payment on time. However, they can’t incur heavy rates of interest as well. It is a problem that they find themselves in. People can opt for a payment plan to make these payments a bit easier for them. This is entirely up to the payday lender. However, this is allowed in most cases. Setting these payment plans up when you are opting for the loan in the first place is possible. It is possible to spread these payments out when you opt for them.
When you are late in paying back a payday loan, your credit score can reach an appointment where there can be no more loans for you anywhere. Not the bank and not even payday loans. You want to avoid this situation because by the time you can pay the entire loan back along with the late fee interest rates, you will have paid back more than you borrowed in the first place.
The interest rates will still be high. However, you will at least be able to break them down into smaller chunks. This will give you ample time to meet your other requirements while working on this. You will not have to put anything on hold to get rid of this loan.
Concluding On Payday loans
When opting for financial assistance, you need to read the fine print carefully. At the same time, you need to understand that there is more than one rule that fits all. There are different kinds of loans. In a payday loan, the terms and conditions can differ depending on many factors. You must understand the different ways in which you can pay the loan back. The interest rates may be different for you. For example, if you are in the military, you have different rules and rates of interest. Even though the difference may not be a lot, you need to know this difference.
Payday loans are ultimately here to help you, and Money Wise is here to make them possible. There is no point in trying to make things difficult for anyone who comes here looking for a loan. We want to be the bridge between you and the solution to your problems. In many cases, when you opt for a payment plan, you may incur a small fee with it every time you make the payment. Even then, this fee will be way less than the late fee that will get attached if you are late in making the full payment back to your payday loan.