The versatility and availability of payday loans has been widely reported, but how flexible are they when it comes to the repayment date?

Well, all companies will define a maximum borrowing period – often between 28 and 45 days. However, the length of time that customers have until the repayment is due will depend on the rules of individual lenders, with some being more flexible than others.

Restrictions are put in place simply to help ensure that the customer has the necessary funds on the agreed date. This is why applicants are asked what their monthly salary is (usually after tax) and when they are next paid. These are two key pieces of information, as it will determine whether or not an application is approved. After all, if you don’t earn enough to cover the repayment, then you can’t reasonably expect to be able to secure the funds in the first place.

This serves to protect both parties though. After all, you can easily get dragged into an inescapable cycle of debt if you’re not careful, particularly if fail to meet repayments a number of months in a row. With the Interest being applied either on a daily or monthly basis (usually at around 25% a month or 1% per day), these costs can quickly escalate. This is also another reason why strict repayment dates are also required, as this gives both a clear and unavoidable date to repay the loan amount.

As the repayment is inherently linked to your next payday, then there should be no reason why an automated transfer should fail. Or, at least that is the idea behind this form of short-term lending. Essentially it is designed to be as simple as possible for the applicant, with the date chosen as a form of safety net. If you are struggling for any reason, it is important that you contact the lender before allowing the payment to default. They may be able to slightly alter the date or discuss other options that are available.

To reiterate, no two lenders are the same and each one will have their own policies when it comes to when repayments are due and their flexibility on this date. This is why the emphasis is placed firmly on the borrower to research the terms prior to submitting an application. As there are variations, you need to make sure that you choose the company that is most suited to your needs, which means reviewing the terms of lending in full. Simply assuming that a lender has a particular policy could certainly lead to issues.

So to answer the initial question, not all payday loan companies have the same repayment dates; however, most follow a reasonably similar logic. With your salary acting as a form of guarantee, your payday becomes an obvious time for the lender to collect. As such, most will automatically assign this as the time when repayment is due, although you may find that you are able to negotiate an alternative date if the company you’re dealing with are flexible enough to accommodate this.

Vincent Rogers is a freelance writer who writes for a number of finance businesses. For Payday Loans, he recommends Payday Power Loans.

Vincent Rogers is a freelance writer who writes for a number of finance businesses. For Payday Loans, he recommends http://www.paydaypower.co.uk Payday Power Loans.

Author Bio: Vincent Rogers is a freelance writer who writes for a number of finance businesses. For Payday Loans, he recommends Payday Power Loans.

Category: Finances
Keywords: payday loans, same day loans, loans, UK, finacne