Ask Yourself: Can I Afford Late Charges if I Miss a Payment?
What Are Your Potential Late Charges?
Check Out Your Loan Agreement
If you don’t repay your loan on time, a lender might charge a late fee or overdraft fee. A payday lender must disclose the fees you could incur if you are late on a payment. Be sure to check these before you take out a loan.
Be Aware of the State Laws
Your state laws may or may not require payday lenders to offer an extension of the loan term if you experience difficulty in repaying your payday loan. If your lender offers an extended repayment plan, you may be able to get additional time to repay your loan without any additional costs or fees, but you should not count on this possibility.
Consider Carefully Negative Scenarios as Well
Not repaying your payday loan, no matter how small, can result in bank overdraft fees, collections calls, and damage to your credit score. A payday lender can garnish your wages if it has a court order resulting from a lawsuit against you.