A non-bank loan is very easy to get. All you need is internet access, ID card and bank account. Loan companies are also tempting us with more affordable than banking requirements and acceptance of all types of income. This means that some people decide too quickly, without a reliable assessment of repayment possibilities. Sometimes, the inability to pay the liability on time will also affect conscientious but unlucky people – random accidents or urgent expenses can cause great financial havoc. A person in such a situation is not, however, deprived of the opportunity to move and protect himself against the negative consequences of non-repayment. The lenders provided for several lifebuoys.
Refinancing or extension
This is by far the most frequently chosen method of deferring the deadline for payment of the loan. Due to its specificity, it applies only to payday loans – the borrower deciding to extend can then get additional days to repay. Most often it will be 7, 14 or 30 days, or exactly the same number of days as the payday loan was originally incurred.
From the customer’s point of view, extension and refinancing look very similar. Technically, however, these are different services. The first option is, in short, to receive a temporary dispensation from the lender for defaulting the loan and simply postpone repayment. Refinancing, on the other hand, is a second loan from a cooperating institution that will be entirely used to repay the previous one and the borrower will gain extra time to pay back. The costs of both solutions are comparable, if not the same – they fluctuate within the standard costs of payday loans. Refinancing and extension of the repayment period are available.
Remember that an extension or refinancing application should be submitted before the original repayment date, as well as the fee for these services. Usually one extension of the repayment period is possible, or two if the payday payday extension is extended.
Dividing the payday loan into installments
Dividing the payday loan into installments is an option that cannot be used by all loan companies. However, most borrowers will not look favorably on such efforts. After all, some trusted lenders allow this option and can set an installment repayment schedule that is tailored to your creditworthiness. These are such lenders as BitCredit, Songa, BorrowUp, AlphaFinance, Silarium, Express money, MoneyMan or Sono Credit.
However, the borrower must remember that not all loan companies will agree that the installments should be spread before the final payment date. In some companies, such as Hivus or BorrowUp, it is required that the liability be past due for at least 30 or 45 days. In addition, you also need to know that these will be additional costs, usually oscillating around 20% of the value of the commitment, and it can be spread over no more than 12 monthly installments. It is rare for a lender to agree to a longer payment period.
Change in the repayment schedule
If you cannot regularly repay the installment loan, it is worth trying to change the repayment schedule so that the monthly installment is low enough to be able to pay it every month. In practice, this will simply be an extension of the repayment schedule that most lenders (e.g. Songa, Provident and Hapipo loans) allow. In some companies, however, this will only be possible if the loan was not originally taken out for the maximum period. Such a policy applies, among others Super Penny, which allows the possibility of extending the payment period, but only within pre-set limits (up to 48 months). In this case, it will be necessary to sign a loan annex, which will take into account the new repayment schedule, the amount and date of payment of one installment, as well as the newly recalculated costs (you should expect that they will increase!).
Loan holidays for temporary financial problems
If we cannot repay the loan installment due to sudden expenses, but we are sure that paying off the loan should be back on track next month, we can take advantage of so-called loan holidays. This is a deferred payment of one installment that must be paid together with the next one. In this way, the borrower gains one unpaid month, during which instead of paying the installment he can pay for more urgent expenses. You can take advantage of the loan holiday many times, as long as the lender allows it (e.g. Saplo or HappiPockets). Of course, this is a paid service, but its cost will be much less than when extending the repayment schedule and it will of course be a one-off payment. However, if we extend the schedule and then improve our financial situation, it will be difficult to return to the previous state of affairs and lower costs.
A consolidation loan for a few payday loans
A few unpaid payday loans are a problem incomparably greater than the problem of paying off one – the difficulties grow rapidly. In this case, spreading all payday loans into installments (and we are not sure if all lenders will agree to this) is pointless, because it will still be a large amount per month. Very high costs will also entail extension of the repayment period. It is better then to use a consolidation loan, which will convert a few payday loans into low monthly installments. This offer can be presented by Ekassa, which offers as much as $s 16 thousand (of which over 12 thousand will go directly to other lenders) for repayment within 12 months.