What If I Cannot Repay My Cash Advance On Time?

If you're due to repay your payday advance but can't because of continuing financial problems, the first thing to do, without delay, is to contact the lender and tell them about your predicament. Nearly all payday lenders will have come across borrowers in a similar situation to yours and will do their utmost to work with you in sorting out a repayment plan that you are comfortable with. After all, at the end of the day, all that both you and they are really interested in is getting the loan paid off.

The absolute worst thing to do would be to ignore the problem and hope that it will magically go away. It rarely, if ever, will and all that will happen is that the lender will become concerned when their repayment transaction (be it a cheque or electronic transfer) fails to clear. And, the next step will be when their recovery department contacts you, either at home (annoying) or at work (embarrassing), in pursuit of their money. Again, once they've achieved this they will work with you in trying to sort out a repayment plan for the borrowed amount and interest.

Once a payment plan has been worked out that's acceptable to both parties and the loan is being paid off as promised, there should be no further problems.

An equally terrible thing to do would be to take out a second payday loan, with another lender, in order to pay off the first one. This is such a slippery slope that it's scary just thinking about it. Before you know it, the interest will be far in excess of the amount originally borrowed (click here for an example) and you'll be sinking deeper and deeper into a hole that just becomes impossible to climb out of.

A word of caution: The payday loan is a way of life for many. They get stuck in a never ending cycle of borrowing, paying back and then borrowing again. It becomes a never ending circle that's very difficult, if not impossible to escape.

When a real financial emergency strikes, the payday loan is a great way of getting some money, fast. But, when you consider the large interest amounts that accompany this type of borrowing, they should be used with caution and consideration.

A payday advance could be an excellent way of tiding you over

We’ve brought together a few of the UK’s top cash advance lenders and posted them on our review page. Please click here to be taken there.