How Long to Pay Back a Payday Loan: The Big Question

How long to pay back payday loan

There are many ways to borrow money, and lots of lenders who will happily take your fees for the privilege of borrowing. These are usually long-term arrangements of several months or even years. What about payday loans for small sums of money, maybe just a few hundred dollars? How long to pay back payday loan?

The clue is in the title: it is a payday loan. In other words, lenders will expect payment promptly on payday, or whenever the money is technically available in the client’s checking account. In the same way that a borrowed sum goes into the consumer’s account automatically, the lender will extract this plus a fee out of the same account automatically. No money changes hands.

The duration between applying for a loan and repaying it depends on your wage schedule at work. Companies are not all the same. Some pay employees every week, others every fortnight. Most employees get their pay cheques once per month. Whatever applies to you, this is how long the loan will last for.

Borrowers are only asking for small sums which they can, realistically, pay off within a short time. Lenders only offer sums which fit with the wages a person makes. Although the reason for the loan and a good credit history are not necessary, an agent will ask how much money a person makes before granting the request. She might change the sum available if someone does not appear to earn enough money to complete the transaction in the given space of time. Still, payday lenders are not financial counselors. You should only borrow out what you can afford to repay.

There are instances during which the lender will permit a rollover of the loan, but fees tend to increase in this situation. The payday lender will not simply increase the time permitted to repay using the same fee schedule, so take care when making a financial commitment of this kind.

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