Manage Payday Loan Repayment Even With Low Income

A payday loan is a short term quick financial assistance to help you cover any kind of emergency expenses such as medical bills or home and car repairs. It needs to be repaid to the respective lender on your next pay date. Despite amazing benefits of this financial aid, you may find yourself in a stressful financial situation if you fail to repay borrowed loan amount on time.

Tips to Make Payday Loan Repayment On a Low Income:

Understand Repayment Criteria

Before taking out a payday loan online, you must know about repayment due date and must ensure whether you will be able to pay back the loan amount on time. Usually, these loans have to be repaid in 2 to 4 weeks in a lump sum depending on the borrower’s payday cycle and State lending laws. So, make sure to check repayment criteria before requesting for a loan.

Don’t Borrow Extra Money

You must be certain about the amount of money you require to cover emergency expenses and stick to borrowing that amount only. The more you borrow; the more will be the lending fees. Also, you should not take out a payday loan amount higher than your monthly income to ease the repayment.

Request For A Written APR

Always ask your lender to provide a written fine copy of the loan agreement so that you can understand the APR and associated fees thoroughly before signing a loan contract.

Manage Funds in Your Account to Avoid Overdraft Fees

To collect the repayment, the lender will deduct funds directly from your bank account  on due date. It does not matter if you have received your paycheck till then on not; the payment request will bounce back if there will be insufficient cash in your account and eventually you will be subjected to pay late fees. Also, if the balance goes below zero, the related bank will charge you a small amount every day until you replenish the funds. These extra expenses can badly hurt your finances, so make sure to have enough funds to meet repayment on time.

Get Repayment Rescheduled If Possible

If you think that you would not be able to make it on time, then its your obligation to  talk to your lender and explain the situation about your incapability of paying back on time. Request him for an extended payment plan and perhaps your request could be approved. Even if rescheduling involves fees, it is cheaper than overdraft penalties.

Follow these tips and manage payday loan repayment effectively and wisely!