It is very easy to find out if you have any outstanding payday loans. The first thing to do is to call or message your payday loan provider to ask. You will first need to give your personal details. After doing so your lender will be able to tell you if any of your loan is still outstanding.
It is however important to keep on top of your current financial situation so that you know exactly how much you currently owe, and to who. This can be achieved by keeping detailed financial records, and creating a thorough and workable monthly budget.
What Should I Do If I Have Outstanding Payday Loans?
If you have any outstanding payday loans, the first thing that you should do is pay them off as soon as it is possible. Paying off your payday loan late will have adverse consequences, such as:
- It may cost you more in interest
- You may be charged late fees
- Your credit may be affected. This will adversely affect your chances of getting a loan in the future.
If you think that you do have outstanding loans, the steps that you should take are:
- Call your lender and ask
- Pay your lender as soon as possible to avoid mounting interest
- Seek help if you cannot repay your loan
If you have more than one loan to pay off, it’s always wise to pay off the loan with the highest interest first. By doing this, you will avoid paying high interest rates over many months. If you have a payday loan with a high interest rate, it will cost you a lot in interest to pay it off over another 6 months. Comparatively, paying off a personal loan with a low interest over 6 months or 1 year will likely not make too much difference to the overall amount that you pay.
How Should I Pay Off My Payday Loan?
The best way to pay off a payday loan is always as quickly as possible. Payday loans are only ever designed to be a short term financial solution to existing money issues. Payday loans are a quick fix, and are designed to be paid off at the date of your next paycheck (hence the name: payday loan). Because of the speed in which the payday loan is received, and the financial situation of many payday loan borrowers, interest rates for a payday loan are often high. They certainly have higher interest rates than longer term loans, like a mortgage.
Because of the relatively high interest rates of payday loans, the best way to pay them off is as fast as you can. Pheabs allows you to repay your loan early with no extra fees. Remember that the longer you take to pay off your payday loan, the more interest you will accrue and the more expensive your loan will end up being. The earlier you pay off your loan, the less late fees and interest you will pay.
What Happens If I Cannot Repay?
If you having trouble repaying your loan, there are a few things that you can do. The first thing that you should do is seek financial advice. A financial advisor will be able to examine your particular financial struggle, and advise you on the best path out of debt. If you are unable to find access to a financial advisor, there are several charities that offer free financial advice to those who are struggling with debt.
You should also make sure that you talk to your lender is you are struggling to repay your debts. In many cases, payday lenders will be able to offer an alternative repayment schedule that may work better for your current financial situation. Lenders can often be keen to help you repay your loan in a way that works for you.