What Happens When You Can’t Pay Your Payday Loan?

I f you have taken payday loan and the time of repayment is approaching fast and you are unable to meet the terms of the payment, the most important thing is not to panic. Every well-established company will help you resolve this problem, only If you inform them on time. There is certain procedure in place that will help you and every other client who is unable to repay payday loan on time.

Below are few easy steps we find handy and that will help you resolve your problems.

First thing you must do, if you are unable to return payday loan within arranged time, is to work on your financial situation and decide when you will be in possibility to repay it. Useful solution is to take pen and paper and write down all your income and expenses, you will have clearer picture of your financial situation and you will have a precise date when you will be able to return your payday loan.

Once you have worked out through your budget and you have on paper certain amount of money that you will able to spare, it’s time to contact the landing company. You can do this by phone, or by email. It’s always best solution to contact them through phone, even though you may feel uncomfortable, it will be easier to explain them your situation and why you can’t repay money on time.

They will offer you a repayment plan and this plan should be based on how much money you have been able to spare. Once you contact payday loan company, they will set up this plan immediately and you will feel much better. If you decide to use an email, you will sit beside computer worrying and checking you inbox all the time. And this will bring you even more stress. You should always use phone, they will not be mad at you, because it’s on your both interest that you pay back that loan.

When you finish this procedure about repayment plan, make your lender to put everything on writing, they will usually send you details regarding repayment plan and they will update your account based on that plan. Once you log in on your online account, you will notice the repayment plan listed on your schedule.  Some companies may charge you additional fees for this type of service, but most of them no longer charge for such fees, even when your repayment is spread through several weeks, you won’t get any additional interest to pay.

Obey your repayment plan

At the end, it’s highly important that you obey your repayment plan and only offer money that you are in possibility to return. For example: if you have taken a 100$ and after fourteen days you must repay 135$, discuss with your payday lender to return 13,5$ per week, if that the amount you can afford.

You will feel much relaxed if you set up this plan and you won’t be under pressure, constantly thinking about this unpleasant matter. You should never ask for another loan, because you will get into greater debts and it will be hard to find a way out.

Author: Josphine Smith

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