Clearing your payday loan is a relatively straightforward process. When entering the agreement you set up a schedule for payment, which is usually across one or two payments and usually begins on your payday. If you then make your repayments on time, the loan is cleared quickly and on time and it’s as simple as that. However, depending on where you take the loan there may be different payment options available to you for clearing the loan. There may also be opportunity to clear the loan ahead of schedule.
Different Payment Methods
1) Payday Loan stores
If you take the loan from a high street loan shop, then it is possible that you can make repayments in cash, cheque or card. It is important if doing this though, that you maintain discipline and make sure that you pay your loan back on time.
2) On-Line Payday Loans
On-Line payday loans are usually handled completely electronically. This means that you do not pay back via cash or cheque, it would be completely unsuitable. Instead, you can sometimes pay by credit/debit card, but usually via direct debit. Repaying through Direct Debit is convenient and ensures that your payment is delivered on time.
The Payment Schedule
In most cases, a loan will run its course and payments will be made on the due date. There are loan providers however, that allow you the opportunity to pay your balance off early and indeed this is encouraged. Early repayment can significantly reduce the amount of interest you pay on a loan, as the interest value is calculated across the expected life cycle of the loan. Paying off early therefore reduces that life cycle and in turn the amount of interest due.
If you hit difficulties
If you find yourself in a period of financial hardship and believe you may struggle to meet your loan commitments, contact your provider as soon as this becomes known. The sooner you act, the more options there will be open to you to find a solution. Your loan provider can only help if they know there is a problem and if you don’t communicate an issue they will expect payment as normal. Missing or late payments under normal circumstances carry in most cases, a very heavy penalty.
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