Before you apply for a personal loan, you must form a repayment plan. How will you obtain the money you need to pay off the loan? When will you be able to make your first payment? On what sort of schedule would you prefer to pay back the lender? Without a sensible strategy for repayment, you could end up paying far more than you intended in fees and fines. So before jumping in head first, review the personal loan repayment options and emergency alternatives below.
Personal Loan Repayment Options
Many lenders these days offer flexible repayment schedules, so you will be able to make regular payments or pay off your loan whenever you like. However, bi-weekly payments are quite typical and required by many lenders. Review your lender’s fee and payment schedules before applying.
What if you don’t have the funds available to make a full payment, but you would like to continue chipping away at your loan? Check with your lender to see if they allow partial payments. For example, Advance Paycheck Online allows partial payments of at least $5 on the principle of your deferred deposit loan without any additional fees (beyond the fees outlined in the original contract, that is). To make a partial payment, simply go online to the member section of the website or give us a call.
If you have the funds and you’re allowed to pay off your loan early without any additional fees, do so! If your lender prorates fees and you pay the loan off early, you will only have to pay the fees that accrue during the time you have the loan.
Extensions on a Loan
Although not ideal, extensions are amongst your personal loan repayment options. If you do not have the funds available to make your next payment, contact your lender several days ahead of time (APO requires at least three business days’ notice), before the payment is electronically debited from your checking account. Don’t be afraid to ask for this extension if necessary, as your lender may work with you to create a repayment plan that helps you get back on track. You will, however, have to pay the interest that has accrued since your last payment. Finally, remember that it is always best to pay something rather than nothing. If you can pay a smaller sum, do so.
Canceling a Loan
Do you wish that you hadn’t applied for a loan at all? If you’re nodding your head, act fast! Even if your lender offers cancellations, time is of the essence. For example, if you wish to cancel a loan from Advance Paycheck Online, you must contact us by 5pm following the effective date of your loan.
Finally, when shopping for loans, be sure to look for a lender that offers prorated fees, flexible payment schedules, extensions, and cancellations. Speaking of which, if you would like to apply for a personal loan, check out Advance Paycheck Online. We are direct lenders offering short-term advances and online installment loans to the residents of four states: Illinois and Wisconsin. Our flexible payment schedules will help you pay off your loan as soon as possible, and we prorate the fees involved so that if you pay off the loan early, you will have very few fees to pay. To get started, please contact us online or give us a call at 1-815-436-4242. We would be happy to help!