Planning for a Bright, Financial Future

A payday loan can be a great way to get cash fast for unexpected expenses. If your car suddenly needs a repair or if you have an appliance that needs a repair, you can take out a payday loan. However, some people may struggle to pay this loan back. Using payday loans wisely can help ensure you don't encounter this problem. But if it just seems you have one expected expense after another, you may find yourself unable to pay the money back to the payday loan company. Here is some information you should know if you don't have the money to pay back your payday loan right now.

You Can Roll a Payday Loan Over

Many payday loan companies will allow you to roll a payday loan over. This means that you simply pay interest on the loan, and the principle payment on your loan is extended out into the future. This can be a great option if you can afford to pay some interest but are struggling to pay the principle balance due to more unexpected expenses. However, keep in mind that some payday loan companies will only roll the loan over a certain number of times. If you are struggling to pay your payday loan and need some more time to come up with the full amount, ask the lender about rolling the loan over.

Contact the Lender

As soon as you know that you will not be able to pay back your payday loan, you should contact the payday loan company. If the payday lender is a member of the Consumer Financial Services Association of America (CFSA), as most are, then their guidelines require the lender to treat you fairly and work with you in a reasonable manner to get the debt paid off. This many include suspending late payments, freezing interest or lowering your payment. They also may be required to cease collection efforts for a brief period of time while you work with them to come up with a new and more reasonable payment schedule. If the lender is not a member of the CFSA, they may still be willing to work with you to get their money.

Stop Automatic Payments

When you sign up for a payday loan, many payday loan companies now require you to allow them to take their payment directly out of your bank account. However, if you don't have the money, you may be charged an insufficient funds fee by your bank. As such, you should notify the lender in writing that you wish to stop automatic payments. This way, you don't get charged an additional fee by your bank and compound your problems. Once you notify the lender in writing, they must comply. 

When used responsibly, a payday loan can provide you with a great option to get money quickly for unexpected expenses, even if you have bad credit. However, if you have taken out one of these loans and you are struggling to pay it off, you need to know what to do so as to not end up incurring additional fees because of late payments, accumulating interest charges, and even your bank charging you money for insufficient fees. Most payday lending companies will work with you to come to a fair resolution, so always reach out to them if you are struggling to meet the terms laid out in your payday loan contract. For more information on payday loans, check out websites like http://www.paydayexpresscashadvance.com.