How to Avoid Being Late on Your Payday Loan
If you are going to take out a payday loan, the last thing you want is to be late paying it back. This will only worsen your credit and cost you even more money, so you want to do everything you can to avoid it. There are a few key tips that you can follow to ensure that you pay back your loan by the due date. If you do not pay it back on time, you will be facing some fairly substantial late fees.
Know When Your Loan is Due
You will need to know the exact date that your load is due to be repaid. This will reduce your chances of missing the payment, which will put you in a nightmare of a situation. Mark the date on your calendar or a sticky note if you have to. We all forget things sometimes, but this is one thing that you absolutely want to keep track of. It might even be wise to set a reminder on your phone it notifies you the day before.
Set up Automatic Repayment
You should make it clear to the lender that you are interested in automatic repayment. This is when the lender takes the full amount of the loan from your bank account on the due date. This is common on all services that all you to get same day cash. It will eliminate the possibility of forgetting or purposely putting off the payment. Just make sure that you are going to have enough in your account to cover everything, including the interest and other fees. If you do not, you will most likely be facing a fee from your bank on top of late fees from the lender.
Supplement Your Income
If you think you might have problems paying back the loan on time, try to supplement your income any way you can. This could mean cutting back on certain unnecessary expenses or getting a part time job. You might not have a lot of time to do this, but it is important that you at least try.
Prioritize the Loan Payment
Anyone who takes out a loan must prioritize it above almost everything else, except for mortgage or rent. It is absolutely essential that you make the payment on time, so you will need to take it very seriously. Some people think that it’s not a big deal if they are a couple days late, but there can be some fairly severe consequences. In fact, being just one day late on your loan can make it very difficult to pay it back entirely.
Get the Interest Rate Reduced
If you have a payday loan with a longer term and you are having trouble making your payments, you could possibly get your rate reduced. Contact the lender and tell them that you are having financial problems. There is a chance that they may be willing to lower your interest rate, at least temporarily. This could be enough to let you pay back the money you owe by the due date.
Get an Extension
There is also the option of getting an extension on your loan if you know you won’t be able to pay it back by the agreed upon date. Some private lenders are more amenable than others, so you will have to contact yours right away. You will most likely be able to get a few extra days to pay back what you owe. Depending on how flexible your lender is, you might even be able to get another week or two. It is largely contingent on the amount you owe and some other factors. Just keep in mind that you won’t be able to get an indefinite extension. You may still have to pay late fees in this situation, but not necessarily.
Don’t Borrow More Than You Need
Before you even get your payday loan, you will have to make sure that you only borrow as much as you absolutely need. Those who borrow more instantly increase their chances of being late on their loan. Take the time to do the math and figure out the exact amount that you require. This way you will make your loan far more manageable.
Anyone who thinks they are going to have problems paying back their payday loan should get in touch with their lender. The last thing you want to do is simply avoid them, because it will only make the situation worse. Being late on a loan can do a lot of damage to your credit, which will have lasting effects. If you are planning to get a payday loan, you need to be absolutely certain that you have the ability to pay the money back on time. Otherwise you should put off getting the loan until a later date, as it is the responsible thing to do.