| June
26th, 2009
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| Ordinarily it is not
recommended that a borrower plan to pay off a payday loan with
multiple payments over time because the fees and interest
incurred by doing so vastly increase the total amount that must
be repaid. If your Payday loan
comes due and you are unable to repay the full amount, you do
have options for repayment, however. You could pay only the fee
and interest to that point, then roll the loan over to the next
pay period. You could also pay the fee and a portion of the
principle, rolling over a smaller amount into a new loan period,
but still incurring interest that will be due at the final
payment of the loan. Re-payment options
vary from lender to lender, and the details concerning what is
and is not permitted with a particular lender will be disclosed
in the documentation of the loan. These details should be read
completely prior to accepting a loan so that the borrower is
fully aware of every requirement before agreeing to the lender’s
re-payment requirements. Some lenders add on fees or other
charges if a payment is late, or increase the interest rate on
the loan if it must be rolled over partially or in its entirety.
Both of these events could make it even more difficult for a
borrower to repay the loan, so caution should be exercised when
agreeing to loan details.
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