There are a few general options for payment arrangements, and they are all contingent on direct debit from a checking or savings account. When a borrower finds that they are unable to repay the payday loan comfortably, they may contact the payday loan provider and request an extension. Extending the terms of the Emergency Loan is basically adding a higher payment and possibly higher interest rates to an already escalating financial problem. The extension is also technically another Payday Loan.
Cash Emergency loans that become out of control for the borrower could result in the closure of bank accounts due to overdrafts and insufficient funds. Along with the closure of an account come the related fees and inconvenience of setting up a new checking account and direct deposit forms with their employer. Unpaid cash loans could end up in collection status, which further incapacitates the consumer credit report. Before applying for an Emergency Loan, the borrower must be honest with themselves about their current financial situation. Failure to assess and verity their own ability to repay the loan only creates havoc in the financial situation of the borrower. Financial education resources and interactive tools such as repayment calculators are available on many websites.
