How To Make Sure You Can Repay Your Payday Loan On Time
Posted on: 5 January 2015
Unforeseen circumstances that deplete your bank account and put you in a precarious financial situation can make you feel desperate for the cash you need to pay your regular bills. If you are in between paychecks and completely broke, you can apply for a short-term payday loan to tide you over until you get paid again. However, when you apply for a payday loan at a place like Money 4 You, you need to make sure that you understand the terms of the loan and that you can repay the cash advance on time.
Do Not Skim Over Loan Details and Paperwork
When you are in a dire financial situation and losing sleep over paying major bills like your mortgage and car note, you may be tempted to gloss over the details of a payday loan because you simply want to get cash as soon as possible.
However, it is in your best interest to take the time to read over the terms of the loan especially the repayment clauses. Most payday loans are due on your next payday. If you are unable to repay the cash on time, you need to know if you can apply for a loan extension.
Many payday loan companies will provide you with an online account so you can apply for an extension from your computer. Each state has specific regulations on maximum loan amounts, extensions and finance charges and these details should be included in your loan agreement.
Make a Budget and Earn Extra Money
If you are not completely out of cash but need a payday loan, make a short-term budget for your finances until you can repay your loan. Every cent that you spend should be accounted for in your budget. Cut out any extraneous spending such as eating out for lunch or renting movies from store kiosks.
You should also brainstorm for ways to earn cash in a short amount of time.
- Hold a garage sale
- Sell items that you find in your attic or basement online via an auction website
- Look for weekend temp jobs
- If you have friends or family that owe you money, contact them to ask for repayment
Make Sure Your Bank Account Has Enough Funds to Repay the Loan
Typically, a payday lender will withdraw the amount of your loan directly from your bank account on the day the loan is due. If you have income from other sources that do not get automatically deposited into your bank account, you need to make sure you deposit those funds as soon as possible.
If the lender is unable to withdraw the amount of the loan, you will be subject to late fees. The amount of fees a lender can charge and actions they can take to obtain a payment varies by state. However, in most cases, the longer you take to repay, the more fees you incur over time.
If you are unable to acquire enough money to repay your loan, ask your family or close friends for help. In addition, contact your local government, church and area non-profits to find out about emergency assistance programs.
In addition, if you have utility bills due as well, call your energy and water providers to negotiate an extension on paying your bill so you can take care of your payday loan first.
If you find yourself in the position of having money to pay the loan back ahead of time, do it. In some states, you will not incur early payoff fees or penalties if you repay early. Furthermore, the earlier you repay the loan, the sooner you will have the worry of owing money out of your mind.
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