We took a payday loan, but we have no money to settle it within the prescribed period. See how to extend your repayment by another 30 days.
Payday loans for $ 0 and extension of repayment
Payday loans offer tempt us with the option of borrowing money at no cost – these are called payday loans for 0 USD. Taking out this form of loan does not involve accruing interest and commissions with which we would meet in a traditional bank. We may wonder to what extent lending us money is profitable for such a company? The answer is very simple: we incur costs if we are unable to pay the debt on time. This is how companies lending money for $ 0 earn.
Any loan extension costs must be specified in the loan agreement or company rules. Deciding to take payday pay, do not make a decision rashly. Let’s also analyze all the offers in terms of these costs – we can’t know what will happen the month after taking the loan … Maybe we can’t afford to pay the debt? Therefore, do not expose ourselves in advance to the highest costs of postponing the payment, and choose a company that provides such a service at the lowest price.
How to extend payday payday repayment?
Standard payday loans are granted for a period of 30 days, however, more and more companies are modifying their offer, matching it to the needs of customers and offering loans for 60 days. It happens that even after two months of incurring a debt, we are unable to pay it back, which is why some of us decide to extend the loan. Some companies do not assume this option at all, so in these cases it makes no sense to ask for the payment deadline to be extended. However, how to extend the payment of payday loans in companies that allow us to do so?
First of all, it should be mentioned that loan companies do not add the amount of the loan extension to our previous debt. This means that if we want to extend the loan, we must first make a separate payment to the lender’s account. Many people, to get the money needed for this purpose, borrow from another source – this can end in a spiral of debt.
If we are already decided to extend the loan, for this purpose you should report to the loan company and provide such information to an employee of the Customer Service Office or (if we took a loan via the Internet) make a change in the customer panel.
Is it worth extending the payday pay?
It would seem that extending the payday payment deadline is the only option before avoiding the unpleasant consequences of defaulting on time. On the one hand, yes, but on the other, no. In most cases, it is not profitable for us to extend the loan financially, no, if we definitely settle the arrears up to 30 days with the original date of payment. After all, most of us prefer to extend the loan for fear of debt collection and other, worse consequences. No worries are needed and we are already explaining why.
First of all, we are afraid of very high interest rates. Yes, they are calculated from the moment the payment deadline expires, but their size is not so dependent on the loan company. There is a limit to the amount of interest – it is determined by the Anti-usury Act, which protects borrowers from unfair practices. (It is worth reading our earlier article Anti-usury Act – what is worth knowing? It was established that interest may not exceed four times the amount of the National Bank of Poland’s Lombard loan. How does it look in practice? $ 7. How does this amount relate to the costs of extending the repayment deadline, which are sometimes even several hundred dollars?
Our next concern is entering our data in the BIG debtors register. In this case, legal provisions again come to the rescue. The lender can submit our data only if 60 days have passed since the repayment date. If we repay the debt by then, our data will not appear in the debtors database.
Our fear also includes fear of the debt recovery process. Of course, if we do not settle our debt on time, it will be launched by a loan company, but such a process cannot go on forever. The contract provisions specify how many reminders the company sends. Although they involve additional costs, they usually do not outweigh the costs of extending the loan repayment date.
Is the payday loan really beneficial?
We usually decide on payday pay when we urgently need cash. Loan companies encourage us with a very quick loan procedure. However, in the case of short-term loans, there is a very high risk that we won’t be able to pay back the borrowed $ 500 or $ 1,500 in a short time. In this case, we need to think about extending the loan or another way to pay off the debt at a different time. Therefore, before taking a payday loan, it is worth looking for another company that will lend us money as quickly.
We can use the offer of the Brandstein portal, which offers loans for up to several thousand dollars, and in addition they are long-term. If we are not sure that we will be able to pay back payday loans in a short time, taking a loan for a few / several months is a much better solution.