Can I Extend My Payday Loan Due Date?

Author · Modified on 27 September, 2022

Yes, you can extend your payday loan due date as long as your lender is happy for you to do so.

Extending a payday loan can be a good option if you find yourself struggling to meet your loan repayment plan.

Alternatively, you could choose to “rollover” your payday loan

As long as you talk to your lender as soon as you realise that you may have trouble paying-off your loan in-full and on time, your lender will most likely be understanding of your situation and help you work out a new, extended repayment plan, however, this will most likely come with incurred late fees.


An extension needs to be filed by notifying the lender within two days of the date the payment in full is due.


How to Extend Payday Loan Due Date


If you know in advance that you will not be able to pay back your payday loan when it is due, it is possible to ask your lender for an extension.

With an extension, the borrower is simply granted additional time to repay the original payday loan under the original loan agreement’s terms and conditions.

An extension needs to be filed by notifying the lender within two days of the date the payment in full is due. The lender will want to know when your next payday is coming and will expect payment at that time. However, extra charges, such as late penalty fees, will most likely apply.

You may be asked to sign an amendment that includes the new payment due date.


How to Rollover a Payday Loan


It’s important to note that a rollover is not the same thing as a payday loan extension.

With a payday loan rollover, the borrower is required to pay an upfront fee for additional time to come up with the total payment. The lender may change the terms of the loan at this time, which includes increasing the interest rate. The borrower will be required to sign a new loan agreement, as the old loan is now rolled into the new one.

Although there are no hidden costs associated with a payday loan rollover that is conducted through a reputable lender, there are fees you’ll have to pay when you agree to this type of loan.

Depending on the lender, you may have to pay a fee for the rollover, which still includes your principal rate and ongoing interest charges, or you may have to pay a set fee plus a higher interest rate. All of the fees will be clearly spelled out in your rollover contract.


Alternatives to Extensions or Rollovers


Both extensions and rollovers can be good options if you are struggling to repay your payday loan, but both can be costly. Fortunately, there are some other options to extensions and rollovers for you to consider if you’re struggling to meet your payday loan repayments.


Paycheck Advancement From an Employer


If you find yourself struggling to your next paycheck, one option for you to consider is to go directly to your boss or your company’s HR department and request a paycheck advance.

Your company may authorize the advance without any interest fees, although some businesses charge a small interest fee for the service.

Not every company allows paycheck advances but it is certainly worth asking as the worst that can happen is they say no!


Short-term Borrowing From a Friend or Family Member


Whilst you may find it tricky to ask a friend or family member for a loan, it won’t cost you as much as a payday loan. Friends and family are also more likely not to charge interest or give you a quick repayment deadline like you’d get with a payday loan.

However, it is important to have a repayment plan set-out with the friend or family member who lends you the money, as financial issues are one of the more common reasons for family/friend disputes.


Apply for a Personal Loan or Credit Card Advance


Personal loans require you to prove that you can repay the loan; however, if you do qualify for one, you’ll find their interest rates are often quite low. The average personal loan interest rate as of July 2020 was 11.91% which could be more affordable for you than other loan products.

Alternatively, the average interest rate for a credit card cash advance is 24.8%, which, again, could be more affordable than other loan products.

What If I Cannot Repay My Payday Loan?


If you cannot repay your payday loan, the main implications could include follow-up correspondence from your lender such as calls and emails,  additional fees and added interest.

In addition, it could result in a negative impact on your credit score, making it more difficult to get credit elsewhere in the future.

If you are struggling to repay your loan, contact your lender and try to arrange an adjusted repayment plan. You could also seek an additional loan, or approach friends or family for temporary support.

Remember, you should only take out a payday loan if you have a plan of how you will repay it.

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