You might be able to get an extension on your loan if you find you can’t repay it by the date you agreed.
Most companies will let you put back the final payment date on your short-term credit. How they approach the process varies by lender. Usually you have to apply for an extension and it’s not guaranteed you’ll get this. Often, you’ll have to be completely up to date with all your payments too – including any interest.
Note: Even if your application for an extension is accepted, you may be charged a fee as you’ll miss the original agreed repayment date, whilst interest is still charged for the extension date. This means you could repay more than you initially planned, so it’s best to only get an extension if you really need it.
What’s more, all repayment data is recorded on your credit file and therefore an extension may have a negative effect.
The exact steps you need to take to get an extension on the amount borrowed, depends on your particular loan. However, as a general rule, all firms must treat customers fairly when they are facing arrears, including considering the following actions:
• 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 some general details that apply to different areas of credit:
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 will increase the total amount you have to pay back.
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Is it possible to get an extension on a short term loan