Payday loan is very easy to get approved and great for people who need money urgently. Normally, the payday loan lenders will collect the payment for the amount you owe on your payday through automatic billing. Through automatic billing, the money will automatically be deducted from the bank account on file at the due date. The deadline for a cash advance loan is usually 8 days – 20 days. The benefits of the automatic billing is that it ensure that you won’t miss a payment in case you forgot about the deadline.
Although automatic billing is a convenient form of payment, your financial situation may not go smoothly at all time. Payday loan lenders usually don’t accept check for the repayment. They also do not accept calls to pay back the owed amount via credit card. As a borrower, you must make sure that you have enough money to cover the amount you owe on the day when they will deduct the money from your bank account.
If your bank account does not have enough money and they still manage to deduct the money, you may get bank overdraft fees. If the lender is not able to deduct the funds from your account, you will be penalized with a late payment fee since you fail to pay back by due date. Besides, most lenders will also charge interests on the outstanding amount, for example 1% per day. The interest rate will quickly accumulate to a large amount if you don’t quickly settle the debt. The lender may also try to deduct money from the account of your friend who have helped you to pay back the loan in the past.
Paying the cash advance loan in full which includes the principal amount and interest charges, is always the best. This is because it can help you to avoid spending money on additional fees and interest. If you know you can’t pay back the payday loan, you should contact your bank to cancel the Continuous Payment Authority. The payday loan has no right to stop you from canceling the Continuous Payment Authority according to the law. You should give the lender a call and tell him about your financial situation.
Many lenders will let you pay back in installment to make it easier for you to pay back the loan. The repayment plan involves making partial payment with interest rates and fees over a period of time. This will result in paying back more because of the accumulation of the interest rate but it can help you to pay back the loan easier. You can also request to extend the deadline by paying an additional fee. If you need more time to pay back the loan, you should inform the lender about 2 days before the deadline.