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:
• Payday – Some lenders will let you postpone your repayment date, which is usually when you’re expected to return the full loan amount and the interest in one go.
• Doorstep – It is possible to get an extension when you get a home credit loan through Provident. If you are having any kind of repayment difficulties, speak to your Agent. They will assess how much you can afford to repay, suggest different days to repay your loan, or longer terms.
• Online/instalment – There are usually two options: a payment date change or a full extension. A repayment date change means just moving the date back a few days, perhaps if your pay packet has been delayed or you need time to shift funds. An extension is where your final payment date gets moved to a much later date, although you’ll usually have to pay more interest. There may also be additional fees attached to this option.
• Text/mobile – As these are typically smaller amounts to be paid over a shorter period, an extension might not be possible. It’s likely the lender might want to work with you to come to another arrangement.
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.
If you’re struggling with repayments and you have a Provident loan, speak to your Agent.