Payday loans incur a substantially high rate of interest. It would be a tad unfair to single it out as many unsecured short term loans, especially those in the private lending industry, come with steep interests. This is one of the reasons why payday loans have longer repayment terms these days. You can repay payday loans in three months or six months. Some lenders will allow you up to a year. A few would provide you eighteen months to repay.
Since the repayment is broken down into installments, it is easier to manage the whole loan. It is always easier to pay smaller sums of money over a period of time than one lump sum in thirty days or so. However, the same convenient installments often encourage borrowers to find ways to manage this liability. Many borrowers choose loan amounts that are higher than what they need or can afford to repay. Subsequently, borrowers try to find ways to manage the repayments every month. You should not manage the installations of payday loans or of any type of short term loans. You should focus on complete repayment.
Have a holistic plan to repay the entire loan amount with the interest. The longer you linger with payday loans, the more interest you would pay. If you try to manage the installments somehow, chances are you would miss one or perhaps a few. This will incur late repayment charges or fines. There will be some kind of penalty and this will add to your existing financial liability. You should have a plan in place that allows you to repay the whole amount, sooner than later. You would be free from the debt and you would not have any negative impact on your credit score. There are lenders of payday loans that would allow you to repay earlier than the stipulated term.