Should you find it difficult to repay your loan on time, it is important that you either extend the loan or contact the lender to apply for a repayment loan. Which option is the best, or really least bad, depends on. Do you know that you can pay soon after the due date, you should choose to extend the loan. If, on the contrary, you suspect that you will have difficulty repaying within a few weeks up to a month, you should immediately apply for a repayment loan.
An unpaid invoice for a sms loan cannot give rise to debt collection and possibly referral as long as the loan is extended or is subject to repayment. This means that you eliminate the risk of receiving payment remarks and a debt when you take any of the above measures.
Here’s how a installment loan works
With a repayment loan, the total debt is distributed over several months. For example, if you have borrowed USD 1000 with a repayment period of 30 days, the installment loan can give you four months to repay (at USD 250 per month excluding interest and fees). You make the application yourself via the usual channels (e-mail and telephone and possibly via “your pages” on the lender’s website) and the granting is normally in principle immediately.
However, getting the benefit of avoiding further problems with the repayment regarding debt collection, and so forth, is not free. You will be paid a fee for the preparation of the installment loan itself (USD 170) and in addition there will be a fee for each individual payment opportunity. The extra costs of the loan can be really real.
Example: You have borrowed USD 1000 in 30 days at a cost of USD 250. You cannot pay on the due date and suspect that you will not be able to pay within the available extension periods either. You then apply for a installment loan.
With the installment loan, your debt increases through a magic trick to USD 1420 (1000 + 250 + 170). You may also have received a reminder (USD 50) and will have to pay late interest. Your installment loan is set up in four months and for each month you pay a fee of USD 40. If you pay on time, your loan now costs a total of USD 1630.
Do not borrow unless absolutely necessary
The issue of extending and paying off sms loans are excellent examples of the importance of repaying sms loans in time. The cost of the loan becomes significant as soon as delays occur. You should never apply for a sms loan if you are not entirely sure that the invoice can be paid before the due date!