09 Aug 2021
If you've successfully applied for a payday loan and agreed to the repayment terms, the next step is of course, meeting those repayments. But what do you do if something happens and you're unable to pay back a loan in time? The good news is that it is possible to ask for a loan extension. Find out what steps you can take today if you or someone you know is worried about meeting their repayments on an existing loan.
Put simply, a payday loan extension will be granted by your lender when you forecast that you'll be unable to meet your repayments in time. This extra time given to repay your loan will be specified by your lender and may involve refinancing the terms of your original loan to accommodate for the loan extension.
If your future loan repayments are keeping you up at night, you may need to consider applying for a loan extension to help you avoid penalties for any late repayments. Here are some steps you can take if you're not sure how to get a loan extension.
Before you apply for a payday loan extension, first review your current financial situation. Are you a casual employee and have had your working hours reduced for the upcoming month? Situations like this may mean that you'll have less income available in your upcoming pay cycle so this may place strain on your ability to meet any future loan repayments. This is where loan extensions will come into play.
Managing your budget is always key to staying in control of your finances and the same applies to meeting your repayments on any loans you have taken out. To help you develop good financial planning habits, see this guide on how to manage your budget on the Sunshine Loans blog.
Most payday lenders have the option to negotiate a loan extension on your current repayments. If you foresee you'll need a loan extension in the near future it's best to contact your lender as soon as possible.
Don't worry! Sunshine Loans are your rainy day fund experts and we understand sometimes in life, when it rains, it truly pours. So, if you think you might not be able to pay on time, we strongly recommend you get in touch with our friendly customer support team as soon as possible to discuss a potential payday loan extension. We need 2 business days' notice for rescheduling or adjusting payments, so it's best not to leave it to the last minute to contact our team if you foresee issues. Fees will be incurred on any deferred payments on your payday loans.
Always remember that applying for a loan extension should be avoided where possible because this will incur further fees. However, there are lots of tips and tricks out there that you can keep up your sleeve for a rainy day. For example, you can make fortnightly repayments instead of monthly to reduce your total interest payable – there are more 26 fortnightly periods in a year vs. 12 monthly periods (so more repayments = faster loan pay back).
For more information on how to pay back your loan faster and avoid a payday loan extension, read this guide to brighten your day today!