More than 12 million Americans rely on payday advances to bridge any gaps in cash or income flow that they may be facing. Unfortunately, 4 out of 5 of these Americans are unable to pay back the full amount of the loan within the specified time. When this happens, the payday advance will "rollover", which basically means that the debtor will be charged additional fees to push back the due date of the loan. These fees and penalties can become quite expensive. If you are unsure of how to deal with a rollover, you should read the following 3 tips.
Contact the Payday Loan Office Immediately
It's easy to feel embarrassed when you know you have insufficient funds to pay back the full amount of the payday advance. Many people may want to delay facing the problem for as long as possible, and will not proactively contact the payday loan office regarding their situation. This is a big mistake. By not dealing with the situation immediately or before the due date approaches, the debtors may be charged additional fees and fines on top of the rollover charge, as the office was unaware and not notified of the situation.
Contact the payday loan office immediately and explain the situation to a representative. The representative will be able to put a note on your file, and can ensure that the account will not accrue additional charges other than the rollover fee. In addition, you'll be able to avoid getting pesky calls from the office when the due date has passed and you have yet to repay the advance.
Cancel Recurring Payment at The Bank
If you have already noticed that there are insufficient funds in your bank account to pay for the payday advance, contact the bank immediately in order to cancel any recurring payments that may have been set up. It's important to notify the payday loan office in advance that this will be happening as well, so there are no surprises on either end. This is something that a lot of people tend to forget to do.
If the payment is not cancelled, you might be charged overdraft fees by the bank. In addition, the payday loan office may charge you a processing fee for the failed transaction. These fees can quickly add up, especially when you consider the fact that the average overdraft fee is about $27.
Negotiate Rollover Charge or Interest Rate
Depending on how long of an extension you may require to fully repay the advance, you might be able to negotiate a more reasonable rollover charge or interest rate with the payday loan office. Don't hesitate to call in or go to the office in-person in order to determine whether there are any fees or charges that can be reduced. At times, some offices will offer you a discount if you have been a loyal customer.
Although payday advances can be of great financial help in times of need, it's important that you budget yourself in order to be able to fully repay the loan on time. If not, familiarize yourself with the terms and conditions for rollovers, and implement the above 3 tips in order to reduce the total amount of additional charges and fees you may face. Contact a local loan company, like Payday Express, for more help.