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.
Additionally, he may resort to sending you threatening calls to recover his money, which will escalate your frustration level. Once you enter an EPP arrangement, the lender will grant you more time to make the repayment of the loan in peace.
Besides the extra time, you will not be charged any late fee or interest for that period, which is very relieving for any borrower who is going through tough times. The lender will not hand your case to the collections to recover the money and you will not be harassed at work and home.
The application for an EPP should be made by the last business day before the loan is due. It requires the borrower to sign a new agreement with the lender.
Your due loan amount will be reorganized accordingly with the extended term, which is generally between 6 and 12 months. Subsequently, you can also get the help of credit counseling agencies for further help regarding your problem.
Once you enter the EPP program, make it a point not to fail in making the payments on time to stay away from any further trouble.
So! An Extended Payment Plan is an answer to all your financial troubles and debts. Now, transform your life with an option that is a sure shot key to pay off all your uncontrollable money issues. Find the alternates at Installment Loans.
