Is it possible to extend the repayment of a short-term loan?

Is it possible to extend the repayment of a short-term loan?

You might be able to get an extension on your short term loan repayments if you find you can’t repay it by the date you originally agreed with your provider.

Providers may let you push back the final payment date on your short term credit, but it varies by lender. And it’s not guaranteed as all lenders will have different criteria.

Even if your request for a repayment extension is accepted, you may be charged a fee as you’ll miss the original agreed repayment date, and interest could possibly be charged on that extra extension payment as well. This means you could repay more in total than you initially planned, so you may need to consider if you really need an extension.

What’s more, all repayment history is recorded on your credit file and the extension may show as well. There’s the potential for that to be interpreted negatively.

How it works

The exact steps you need to take to get an extension on your short-term loan repayments depends on your individual circumstances and the provider you’ve borrowed from. However, lenders must comply with some general rules. Firms must treat customers fairly when they are facing arrears[1], meaning they should be looking at a range of options such as:

  • Suspending, reducing, waiving, or cancelling further interest or charges.
  • Allowing customers to postpone paying arrears charges.
  • Accepting smaller loan repayments for a set time.

What’s more, customers in arrears should be allowed reasonable time and opportunity to repay the debt. There are also rules limiting how many times a lender can offer you a rollover on your loan as this can cost you more in the long run. If you need to extend the repayment period on your short-term loan, it’s best to get in touch with your provider to discuss your options.

Extending short term loan repayments

There are some general details that apply to extending different types of short term loan:

  • Payday: Some lenders will let you postpone your repayment date, which may be when you’re expected to return the full loan amount and the interest in one go.
  • Doorstep: It may be possible to get an extension when you get a doorstep loan.

 If you are having any kind of repayment difficulties, speak to your lender. They might assess how much you can afford to repay and suggest different days to repay your loan, or offer longer terms.

Alternatively, some companies might prefer to change your repayment schedule, so you’re still paying money when you’re supposed to, including on your due date, but your repayments are lower than initially agreed. Again, this may mean you’re charged additional interest or fees, so could increase the total amount you must pay back.

If you’re struggling with repayments you can speak to StepChange, National Debt Line, or the Money Advice Service for free, impartial advice.


[1] Taken from The Money Advice Service – Problems paying back a payday loan. Retrieved 9th Feb, 2018.


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