Loans are useful when you need monetary help to take care of your impending expenses. However, repaying a loan can become problematic if you do not have enough cash at hand to maintain the commitment.
There are several reasons for not being able to pay back the loan within the term. When you miss the due date, things become more complicated. You end up taking more loans to pay the earlier one and feel trapped in the vicious cycle.
If your lender is a member of the Consumer Financial Services Association of America (CFSA) then you have the option of applying for an Extended Payment Plan (EPP). Generally, if you do not pay back the loan by the agreed due date, the lender will burden you with penalties and charge a higher rate of interest.