Is It Possible To Repay Payday Loans In Installments?
Yes, it is possible. It is true that carry an array of benefits, especially when you are in an urgent, unexpected financial crisis and you have no other way to get the money you need. These short-term cash advances provide you instant cash as and when you need it. The process is very simple – no credit checking, no faxing of documents, and just no or little paperwork. Almost anybody who has a decent employment record with regular monthly income can qualify for it. That is the reason why these loans have become so popular, especially with people who have hand-to-mouth monthly income. The only problem is that the rate of interest these lending programs charge is very high. If you miss the due date, the outstanding amount grows very fast, as then you become liable to pay hefty penalty charges along with high interest for the extended period. Considering this very fact, these lenders have started offering the convenience of installment repayments for the borrowers. Following is a brief rundown on how you can take advantage of it.
Contact The Company You Borrowed The Money From
When you are unable to make the repayment for payday loans, the last thing you want is to face the lenders. People often become so worried that they even stop taking calls from lenders. This is obviously not the correct strategy, as it will leave a very bad impression on the lending institution. A better idea is to give them a call and explain your situation. Most of these lenders are not as bad as some people assume them. They will review your situation and if they find no foul play, they may suggest you an alternative solution on how to
get rid of your mounting debts. One common solution that payday loan companies these days are offering is that they allow you to pay the debt in easy installments.
Negotiating The Terms Of Installments
There are several things that you need to keep in mind while you agree to repay payday loans in installments. For example, you must try your best to keep the repayment period as small as possible. The longer repayment period will result in high amount of interest every month. The sooner you pay it off, the lower will be the amount of interest. Before you make a personal visit to the lender, you must workout a plan in advance. Get a pen and a notebook. Write down your regular income and expenses. Do some tight budgeting to reduce the burden from the expenses column. Calculate how much money you have in your retirement fund and where else you have invested your money. The idea is to find out how much money you can afford to pay toward payday loans every month. Prepare a proposal and submit it to the lender when you meet them.
Some people may wonder if it is wise to use retirement fund to payoff these short-term cash advances. If you are also confused on this part, it is very important for you to understand that these lending programs create a viscous cycle that is not very easy to break if you do not pay it in time. As long as these loans are outstanding on you, it will keep hurting your finances and credit score. Therefore, your first priority should be to get rid of these debts first. You always have an option to rebuild your retirement fund once you and once your finances get back on track.
Category: Payday loans