Paying back loans and debts is always important, and payday loans are no different. Because they function as a temporary hold over until you pay check arrives, payday loans are not meant to be long term. With a payday loan you need to be ready to repay everything you borrowed and the interest next time you are paid.
Many payday loan companies require your banking information so that they can automatically deduct it from your account. Make sure you pay attention to what time the loan is scheduled to be debited to your account because you will need to have the money available before that time. If you don’t, your bank may allow the transaction anyway, in which case you will have to pay overdraft fees in addition to the loan and interest.
If the funds are not available, the loan company will continue to try to take the money until the agreed upon amount is repaid. This can cause financial hardship, if they take money that was designated for other bills.
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Should you get help from family and friends who pay from their own bank account, the next time you take out a payday loan, the people who helped you will also be at risk. If you are unable to make the payment, loan companies may attempt to take from other accounts associated with your profile.
If the funds are not available from your account, you will be charged a fine. Make sure you know what that fee will be before you sign the papers. As soon as the loan company is able to get the agreed upon rate, they will automatically deduct the fee from your account as well.
Also, your inability to pay back a payday loan also shows up on your credit score. This is why it is so important to make sure that you can pay the loans back on time. If you have any doubt about being able to pay it back in full by the agreed upon date, contact the company immediately to see about making payment arrangements.