Guides

Ask for a payment plan

If a bill is the reason you are thinking about a payday loan, the cheapest option may be to ask that creditor for more time. The FTC's advice: ask your creditors for more time to repay; they may be willing to work with you.^[1]

Call early

If you are behind, call the creditors you owe before a debt collector gets involved. Tell them what is going on and try to work out a new payment plan with lower payments you can manage.^[2] Many credit card companies are willing to change your payment if you are facing a financial emergency.^[3]

Ask what it costs

Before you agree, find out whether the creditor will charge you for the extension, through a late charge, an extra finance charge or a higher interest rate, and what other consequences the new plan has.^[1][2] A plan that lowers your monthly payment can cost more in interest over time.^[4] Get the terms in writing.

Already have a payday loan?

The CFPB says that if you are having trouble paying off a payday loan, contact your lender and ask for an extended repayment plan.^[5] Some state laws require payday lenders to offer extended repayment plans to borrowers who have trouble repaying; the laws vary, and some allow a fee for the plan. Even where your state does not require one, some lenders may still allow it, and an extended repayment plan is different from a rollover.^[6] See what a rollover costs.

Juggling several debts? See Nonprofit credit counseling.