Category: Loans
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When a person takes out a payday loan, the idea scenario is that he or she pays back the loan – plus fees and interest – with the next paycheck. Or, if they know at the outset that it will take two or more pay periods to pay back the loan, they will do that on a predetermined schedule. Every payday loan company offers different terms, which is why a borrower is advised to shop for the best payday lender to fit his circumstances.

But life is unpredictable. A payday loan borrower might run into additional unexpected expenses and have difficulty meeting the payback schedule.

This is where rolling over the loan might make sense. By another name this is refinancing, basically taking out a new loan (offline or using online loan service like to pay off the existing payday loan. Like payday loans themselves, rolling over a loan is an option, even if it places increasing costs on the borrower, including fees charged with every new payday loan.

For the borrower who is considering a rolling over option, three factors are worth serious consideration: