Next Steps After Taking Out a Payday Loan
Once you have taken out a payday loan you might think that there is nothing else to be done, but it is important to understand what is expected of you and what you should do next after taking out a short-term loan of any kind. To be fully informed is to be well prepared for all eventualities and to understand your specific responsibilities. When it comes to taking out a payday loan you’ll have set repayment dates and figures to remember, as well as anticipation of the longer-term implications of not being able to pay back the loan for any reason.
In most cases a payday loan service will allow you to continue to check on the payday loan through a simple online login on the company website. This allows you to check the outstanding balance still remaining for you to pay back, as well as take out another loan (or apply to add more to your existing loan), as well as provide help and guidance should you feel that you might not be able to make your next payment due to a change in your financial or employment circumstances.
If you can access your online short-term loan account then you should get into the habit of regularly checking it. By checking your progress on a regular basis you can keep a full check on exactly how long you have left of repayments, and the exact amount left to pay. In some cases a lender will allow you to overpay in order to cut down on the amount of overall interest you are paying on the loan during the repayment period. Most lenders do not charge for this, but always check first that you can do this without an extra charge. In some cases you will not have an online account and will only be able to keep track of your account through checking your statement or calling your payday loan account manager, as well as only being able to set up a direct debit of monthly repayments.
You will always have a 14-day cooling off period to change your mind once you have successfully applied for a short-term loan. If you do decide that you want to cancel the loan early you must repay the loan amount in full, as well as any interest that has accrued based on the days you have had the loan. This also applied should you repay the loan in full earlier than first arranged (you’ll only pay interest on the amount of days you have had the loan for).
If you wish to borrow more during the period of repayment, most payday loan lenders offer a flexible service. Speak with your contact to ensure that you have all the information you need before adding more money to the loan, as this will have an impact on the amount of interest you are expected to pay back, and your monthly repayment amounts as a result. Always choose to borrow from a responsible lender with a track record of helping borrowers with transparency and flexibility.