Payday Loan Repayment Options
At DirectLoanLenders.Com, we inform our clients about the available payment options for payday loans. Hence, each lender has its policy, most of them require “Full Payment” of payday loans. However, the borrowers have the right to ask their lenders about the following options on paying back a loan.
- Payment in full
- Loan extension
- Renewal with partial capital payment. Loan refinancing.
- Early loan repayment
The first and the best option is Full Payment. With this option, the payday loan and associated fees will be deducted from the borrower’s bank account on the loan’s due date. For the loans taken online, the borrowers must authorize their lenders to debit their bank account. The lender marks the loan as “Paid in Full”, closes the loan contract and sends a confirmation of the full payment to the borrower.
Direct Loans Lenders’ advice: we suggest using this option as a first choice!
Loan Renewal \ Extension
The borrower may request payday loan renewal if such an option is available in his state. Depending on the lender and the state laws, the client can rollover a loan from one to several times. Payday loan renewal involves costly fees. This payment option postpones the due date until the next payday but DOES NOT reduce the loan principal.
Direct Loans Lenders’ advice: make a payment every time you can, to reduce the total amount of the loan principal.
Renewal with partial capital payment. Loan refinancing.
Another way is to refinance a loan by paying interest and at least 10% of the loan principal. Also, ask your lender to refinance a payday loan into an installment loan. Installment loans cost less and monthly or bi-weekly payments are easier to handle.
Direct Loans Lenders’ advice: consider this option if you cannot afford to pay off the loan. This will reduce your loan’s balance and ongoing interest fees.
Early Payment allows borrowers to pay off the loan before it’s due date. Doing so will reduce the loan’s cost because all the fees will be calculated only up to the earlier pay day.
Direct Loans Lenders’ advice: try to pay off your loans early, in case you get an extra income.
How to request one of these payment options?
In order to request any of these payment options, besides “Full Payment”, contact your lender at least two business days earlier than the loan’s due date.
Yes, we take care of our customers!
For peace of mind, select “Payment Reminder” checkbox during the application process. We will send an e-mail with the total loan balance, payment day and available repayment options!
Direct Loans Lenders’ advice: make sure you provide a valid e-mail address. This will guarantee you don’t miss any important messages from us or your lenders.