A payday loan can be helpful when money is tight and payday is too far away to wait. However, it's easy to fall into the trap of payday loans, as the finance fees are high and many people have trouble paying them back. There are steps to take if you are having trouble paying back your loan.

Extension

Ask the company if you have the option of rolling over, or extending, your loan. Many payday advance companies will allow you to extend your loan until your next payday, provided you pay the finance fees on it. You can give yourself extra time by waiting until a later date to pay off the loan.

Installments

Speak to the manager of the company to see if you can pay the loan back in installments. Even if it's just a little at a time, the company may be happy with some money instead of none.

Bank Transactions

If you simply do not see the necessary funds in the future to pay back the loan, talk to your bank about blocking any transactions from the payday loan company. The company will try and collect the money from your account repeatedly, even if it means numerous overdrafts on your account. Close the account if necessary.

Debt Collection

The company will begin a debt collection inquiry on you, including phone calls, email and traditional mail notices. You may be threatened with collections actions or with being sued if you don't pay your loan. Refer to the laws of your state to see what legal action the company actually has.

Credit History

Your credit may be affected from a payday loan advance if you can't pay it. Since you will eventually be turned over to a collections company for unpaid loans, be prepared for a lower credit score. A credit counseling company may be helpful if this occurs.

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Topratedpayday.com: PayDay Loan Tips