Options For When A Payday Advance Loan Can't Be Paid Back
Payday advance loans are very useful tools for a very specific purpose. A cash advance is only intended to be used if you have a minor gap in your finances that will be quickly resolved. Ideally, you should be able to pay back the loan in a matter of days -- weeks or months at most. But what happens if you don't have the funds to pay it back? There are still a few options available to you.
Ask for an Extension
Sometimes you can get an extension on your repayment, especially if you have dealt with the company before and have not been late in your payments previously. This extension usually isn't longer than a few days -- though you may be able to get a couple weeks of extension if you are willing to pay for an extension fee.
Get Another Loan
It is possible sometimes to transfer the balance of your cash advance by getting another cash advance, though you will usually need to do this through another company. The positive impact is that you will buy yourself time to make payments and that you will be able to fulfill the terms of the original loan without penalties. The downside to this is that you will need to pay additional fees and interest to the second company. In addition to cash advance companies, you can consider personal loans, cash title loans, and credit card advances.
Split the Loan
Sometimes you may be able to split the loan payments into a longer term if you have found yourself entirely unable to pay. For instance, a one time payment of $1,000 could be split into four payments of $300 a piece. As you can see, though, this will lead to you paying substantially more in total. You can usually negotiate with a payday lender regarding the terms of your agreement if you find that you can't make a payment, but it is entirely up to the lender's discretion regarding whether they want to accept the new terms.
Payday loan companies do understand that everyone goes through financial issues. Because of that, many of them will work with you on your payments in the event that you cannot make one. The biggest mistake you can make is to fail to let them know that a payment is not coming or that an auto-draft will bounce. If you don't make the payday company aware of this, they may begin to pursue collections.