Payday loans are easy to get and can be a big help when you need cash quickly. Usually, the payment is taken out of your checking account when you get paid again. It's very useful, but it doesn't always work well. Since you were already short on cash, your next paycheck may not be enough to pay it back. Here are some things you can do.
Get An Extension
If you know ahead of time that you won't be able to pay it back this month, you can ask for a little more time. To do nothing would be the worst thing you could do. People who are careless or don't care about paying their bills on time often find it hard to get a payday loan. They are likely to go to a collection agency as soon as possible. This can hurt your credit score very quickly.
To get an extension, you need to let them know at least two days before the full payment is due. The lender will want to know when your next paycheck is, and they will expect you to pay back the loan at that time. Most likely, you'll have to pay more. In fact, it might be the same as getting a new loan, but you can still get your extension.
Pay Off The Loan
You could also refinance your payday loan, which may be the cheaper option. In this case, you will ask for a rollover or an extension, but you will also pay something toward what you already owe. At the very least, you will have to pay back the interest on the first loan. When you refinance your payday loan, it's just like getting a new one. You will be charged the same interest rate, and you will have until your next paycheck to pay it back. You could do the same thing again if you had to.
Borrow more money
If things are really bad, you might be able to get a second loan to pay off the first one. You will, of course, go to another payday loan company in time to get your money before the other one is due. To close the first loan, you will also need to add the interest to it.
In some states, you can't get more than one payday loan at the same time. They may also make you wait between loans for at least two to seven days. In those states, it's clear that this won't work. Still, most states will let you have up to three loans at the same time. But it's not a good idea because the interest rates are very high. Payday loans should only be used when there is no other way to get money quickly and at a lower interest rate.
Before you apply for a payday loan, you should do some research to find the best deal. You will also need to apply at a place in your state to make sure you are following the rules and that you know what the laws are. The interest rates are all over the place, going from 15% to 30%. You can get lower interest rates if you shop around, and new options keep coming up all the time, like the ability to pay back in more than one payment in some places.
