Payday loans are short-term loans that are meant to help out in an emergency. They are also useful for those who simply need cash to get them through until their next pay period. However, as easy as it is to get a loan, it can also be easy to miss payments on one, therefore becoming past due. There are steps that can be taken that can help pay off a past due payday loan, and keep your credit intact.
Instructions
1. Talk to the lending company and see if they can offer you the option of rolling over your loan. You will not be responsible for the loan amount on the day you were originally due to pay it, only the fees. This can give you extra time to pay back the loan.
2. Apply any amount that you can toward the balance of your loan, even if it's a small amount. This shows the company that you are trying to pay on the loan. Pay enough on the loan to avoid it being sent to a collection agency. This can damage your credit score, so avoid this by putting some money on the past due amount.
3. Speak to the company when someone calls to discuss the loan--do not avoid collection calls. More than likely, the company will want to work with you to get the money that you owe, and may be able to put a payment promise on your account, which will stop collection calls for a short time.
4. Make arrangements to pay back your loan in a payment plan. If you account is past due, the company should be willing to accept what money you can give them, and often will work with customers to come up with a plan that both parties can agree to.
5. Talk to a credit counseling agency to help you with your debt problems. A credit counseling agency can negotiate with a payday lender, and may even get your fees waived, so that you have an easier time paying the amount off.
6. Take out a cash advance with a credit card to pay off your payday loan debt. This option does come with credit card fees, however; they are usually lower than payday loan fees, and will help settle your payday loan before it affects your credit score.
