Should I Roll Over a Payday Loan?


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I am devastated, the paycheck I was expecting at the end of the month is not going to help me repay my current payday loan. I had some urgencied that required all my resources, and I could really not pay the loan in full. The lender would allow me to roll over the loan. But I have no idea how that works. Please explain. Thanks.
– Jessica


The Answer

Sometimes consumers are unable to pay back their payday loans on time. When that happens, lenders sometimes offer an option called “rollover”.

If you roll over a payday loan, you get an extension. You have more time to pay the loan back.

The Cost of a Rollover

A rollover is not free, however. You have to pay a fee for it. This fee is often costly. It may even be as high as the interest you owe on loan.

This can add to the challenge of paying off the loan the next time it comes due. For this reason, many customers get pulled into an endless cycle of rollovers with ever-compounding fees.

Legal Status of Rollovers Across States

Rollovers are so problematic for so many customers that quite a few states have flat-out banned them. Others have set strict caps on rollover charges.

Do’s and Dont’s of Rollovers

In some circumstances, a rollover may still be a viable solution if you cannot pay off your loan immediately when it is due. Perhaps the money you thought was coming in that day will be here in a few days. If it more than covers the rollover fee, it may be the most straightforward answer.

In other circumstances, it may be more appropriate to see if the lender will be willing to consider an extended repayment plan instead.

If that does not work, consider getting in contact with a legal aid attorney or a credit counselor for further assistance.

Reviewed by: Casey Bond
Date Reviewed: Mar 25, 2019


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The answer on this page is provided in collaboration with some of our trusted lenders who are proud members of the Online Lender’s Alliance. The purpose of the provided answers is to inform the consumers about the specifics of online lending. It should not be treated as legal advice or regulatory guidance. The information is updated periodically and may include links or references to third-party resources or content. SDL365 does not endorse any third-party nor does it guarantee the accuracy of the third-party information. We encourage you to consult other resources that might serve your needs and take into account your particular situation.

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