If you ever find yourself in a situation where you're desperate for cash, you can turn to a payday loan. This type of loan is easy to get and is fast, and you won't get turned down if your credit is less than great. If you get one, though, and cannot pay it off by the scheduled due date, there is a process called rolling over the loan. You can use this process if you need to, and here are a few things to understand about it.
First: Know the Loan Terms When Borrowing the Money
When you take a payday loan, you generally pay the fees for the loan upfront. Lenders charge the fees by reducing the amount of cash you get from a loan. For example, if you want to take a $300 line of credit, you might only receive $250 upfront, even though the loan is for $300. The other $50 is for fees. Your paperwork will state this information and explain when the loan is due. Make sure you read the documents so that you know this information. Also, make sure you realize that you will owe the full $300 on the due date.
Second: Aim to Pay It Off on Time
After taking the line of credit, try to work out your budget so you can repay it on time. The purpose of a payday loan is to get you through the next few weeks until you receive your next check from work. If you can, try to figure out a way to repay the loan by the date it is due.
Third: Ask the Lender to Roll It Over If You Cannot Repay It
If the due date is approaching and you cannot pay the loan off, contact the lender immediately. Tell the lender about your situation and ask for an extension. The lender will likely agree to extend the due date by rolling over the loan. When this occurs, they may charge an extra fee for the extension of time, but it would provide a way for you to have more time to repay it.
Payday loans can save the day when you need cash now and have no way of getting it. Talk to a payday lender if you need a new loan or if you need to rollover an existing one. You can visit a payday lender in person or online to learn more about these products.