Recent years payday loans have become very popular, as for many people they became a super chance to get the necessary amount of money urgently. The truth is, when compared with a bank credit, it’s easier to get a payday loan. But with all the advantages, there is one significant challenge: you have to return much more than have taken. The time is really limited, so sometimes it happens that when it’s due date to repay a debt, a person is simply not ready for this.
Any US citizen may find himself or herself in such situation. But, when signing an electronic offer, the borrower agrees to comply with the established schedule; otherwise the lender may apply a penalty and begin the process of debt collection.
Let’s figure out the essence of lending and some possible steps to resolve this problem:
- Find out if there is a prolongation. If a client is aware that making a payment will be a problem for him, then the first step will be a prolongation. It is standardly applied to short-term loans that are issued to individuals for a period not exceeding 30 days. At the request, the financial service can change the deadline for several days or weeks. The extension is not offered by all microfinance organizations. But in fact, more and more of them include this option. This increases customers’ loyalty and reduces arrests.
- Only the amount of the main debt is subject to deferment, the interest charged for the period of using the money will have to be paid. Prolongation can be applied many times, but keep in mind that it increases the size of the overpayment. Usually, new deadline is established through the borrower’s personal account on the website.
- The most important thing is to report the problem as early as possible, while in fact there is still no delay. Call the organization’s hotline and ask how to handle this situation. It is possible that you will be offered any options for assistance.
Nota bene! As soon as “credit holidays” are made, the accrual of penalties begins. But according to the law, the debt cannot grow more than three times relative to the sum received initially. If the customer evades the obligation to pay, the agency will go to court and the bailiffs will start their business.
So all you need to avoid all this mess is to be a really responsible and sound person.