loanWe do not always manage to pay the payday loan on time. What to do if we know that we will have a problem with this? One possible solution is to divide the payday payback into installments.
Why is it worth paying back payday loans in installments?
Not everyone who has taken a payday loan can pay it back on time. It happens that some unforeseen factors cause us to run out of money to settle these issues within the prescribed time. What then remains for us? Basically, there are three options for this – extension of the repayment period, use of a debt loan and payment of the payday loan in installments .
The installment arrangement allows for optimal adaptation of the repayment plan to the borrower’s real financial possibilities. Although this involves additional costs, it gives you the option of paying the debt fully .
The advantage of this solution is also the relative freedom when it comes to the time when you can decide on it. It is usually enough to contact the institution that granted the loan before the repayment deadline . Sometimes, even the expiry of this period is not an obstacle. The option of paying the payday loan in installments is also often offered to customers who have already exceeded it.
Of course, you can also decide on an installment loan already at the application stage. It is a safer way out when we are not sure that we would be able to pay the payday payday on time. Often, installment loans are cheaper and simply more profitable.
How do you apply for a payday loan in installments?
If we want to spread the payday payday installments, we should contact the institution that granted the loan to us – as we mentioned, it is best to do it before the repayment deadline expires. It doesn’t pay to delay.
It is worth asking about the installment, even if the loan agreement does not mention this option. Such information is rarely given explicitly. The contract often operates under the term “new repayment plan” .
In the next step, we are most often arranged with an advisor . Meeting with him will allow us to find out what we have a realistic chance of splitting the repayment in installments and to specify the conditions under which it would take place.
However, consulting a consultant alone is not enough. Loan companies usually require a written application for the payday loan to be paid in installments. What should be in such a document? Well, it should contain two components. First, it must contain an officially formulated request for payment of the loan into installments , and secondly, the application should be supported by the justification for that request. Therefore, we must explain why we are unable to pay the whole amount in advance.
The reasoning should, of course, be meaningful and convincing. We will describe in detail the circumstances that make repayment of the liability on time impossible. Although this is usually not necessary, it is worth not limiting yourself to words, but supporting our justification with a specific document that will confirm the reason for the repayment difficulties we have indicated.