When Do Payday Loans Have to Be Paid Back?

When do payday loans have to be paid back?When you take out a payday loan one of the most often asked questions is when do payday loans have to be paid back? In most instances a payday loan is due back on your next payday, hence the name. There are a few instances where this is not the case, though.

Payday lenders are required to give you a certain amount of time to pay back your loan, and it varies by state to state. If you live in a state with a one week minimum, then that is the shortest amount of time a lender can give you. This means that if you take out a loan from them within one week of your next payday, they have to give you until the next one after that. This essentially gives you an extra week, and is why it makes sense to wait as long as you can before taking out the loan.

When Do Payday Loans Have to Be Paid Back? Answer: It Varies

Another way that your due date can vary is if you are paid on a weekly or monthly basis. If you are paid weekly, most places will give you an extra week so that you are not required to pay it back the next week, and you will have two weeks just like those that are paid biweekly. And if you’re paid monthly, you will also be able to play around with your due date based on when you take out your loan, and it will usually be due on your subsequent payday.

All of this varies by which state you’re in, and also whether or not this is a true payday lender. If you are doing business with a brick and mortar lender that is adhering to state laws, then they will have to follow the rules that are in place for when a loan is due. However, if they are just a lender that is not technically a payday lender, you will be at the mercy of whenever they say the loan is due.

Online Loans and Due Dates
If you get your loan online there could be a chance that it is not a true payday loan, and the lender can set a due date as they see fit, especially if they are offering an installment loan that you can pay off with monthly payments. However, if they are calling themselves a payday loan then it will typically be due on your next payday unless your next payday is only a few days away, in that case it will jump to the one after that.

The Importance of the Due Date
When the loan is due back has a large bearing on whether or not you’ll be able to pay it off. If the loan is due too soon, you will probably need to reborrow the money and this is really what lenders want you to do. The longer you get to repay a loan the better it is for you as far as the calculated APR goes, and as far as the likelihood that you can repay it.

That’s why it’s a good idea to wait an extra day if it makes a difference whether it will be due on your next payday or the one after that. For example if you come in to get your loan and your payday is 8 days away, you should return the next day so that it is 7 days away and that bumps it to the next next payday. You essentially buy yourself some extra time and you can use your next payday to get back on your feet, and then the one after that to pay off the payday loan.

Of course ideally you’ll want to avoid the whole process of getting a payday loan altogether, as it will not really help your financial situation very much, and only in a few rare cases is a person better off after taking out a payday loan. The expense is just too high to justify any perceived financial help, or lifestyle maintenance. If you can come up with any other solution, it is recommended.

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