A payday loan is an excellent choice for considering short-term financial needs. Their maturities are usually shorter than traditional bank loans, so repayment needs to be completed within 2-4 weeks. However, if you are unable to repay your payday loan in one lump sum, you can consider renewing or extending it.
In order to avoid payment or payday loan defaults, the loan is usually paid in installments. More than 80% of payday loans are carried forward within 14 days or immediately follow another loan. (Consumer Financial Protection Bureau)
What happens when you cannot repay your payday loan?
If you fail to pay off the loan on the due date, then:
How to avoid defaulting on payday loans
When you are struggling to repay your payday loan, the following options can help you:
1. Extend loan
Many payday borrowers who were unable to repay their payday loans extended the loan period. All you need to do is to revise your loan agreement with new interest rates and new terms. This will give you a few weeks to repay your payday loan.
2. Ask your lender about the payment plan
Before the loan is due, you need to notify the lender that you cannot repay the loan on the due date. Discuss with your lender how to consolidate your payday loan. They can suggest any monthly payment plan or installment plan.
If your lender offers an installment plan and allows you to repay the loan amount through the plan, please make sure to pay on time to avoid further risks. You can join the installment plan without paying any fees to the lender.
3. Consider considering personal loans
You can withdraw a personal loan to repay your payday loan. Then you can concentrate on repaying your personal loan on your own schedule. Personal loans have a long term, so you can pay off the loan within a few months.
If you have already received a payday loan, please explore repayment methods to avoid default.
Online payday loans
Online loan online payday loan online payday loan
Flex Loans Online
Flex Loans Online is a trusted online payday loan recommendation service that can help people overcome short-term financial emergencies. Our secure and reliable online loan application makes it easy and convenient to obtain payday loans online. We have a large network of qualified lenders to increase the chance of approving fast cash loans.