At DirectLoanLenders, we inform our clients about the available payment options for payday loans. While, each lender has its policy, most of them require “Full Payment” of payday loans. However, the borrowers have the right to ask their lenders about the following options on paying back a loan.

  1. Payment in full
  2. Loan extension
  3. Loan refinancing with partial capital payment
  4. Early loan repayment
  5. Apply for Extended Payment Plan (EPP)

Full Payment

The first and the best option is Full Payment. With this option, the payday loan and associated fees will be deducted from the borrower’s bank account on the loan’s due date. For the loans taken online, the borrowers must authorize their lenders to debit their bank account. The lender marks the loan as “Paid in Full”, closes the loan contract and sends a confirmation of the full payment to the borrower.

Direct Loans Lenders’ advice: we suggest using this option as a first choice!

Loan Renewal \ Extension

The borrower may request payday loan renewal if such an option is available in his state. Depending on the lender and the state laws, the client can rollover a loan from one to several times. Payday loan renewal involves costly fees. This payment option postpones the due date until the next payday but DOES NOT reduce the loan principal.

Direct Loans Lenders’ advice: make a payment every time you can, to reduce the total amount of the loan principal.

Loan refinancing with partial capital payment

Another way is to refinance a loan by paying interest and at least 10% of the loan principal. Also, ask your lender to refinance a payday loan into an installment loan. Installment loans cost less and monthly or bi-weekly payments are easier to handle.

Direct Loans Lenders’ advice: consider this option if you cannot afford to pay off the loan. This will reduce your loan’s balance and ongoing interest fees.

Early Payment

Early Payment allows borrowers to pay off the loan before its due date. Doing so will reduce the loan’s cost because all the fees will be calculated only up to the earlier payday.

Direct Loans Lenders’ advice: try to pay off your loans early, especially if you get some extra income, like a bonus, or a pay rise.

Applying for Extended Payment Plan

If all other options are unavailable, borrowers may apply for Extended Payment Plan or EPP. EPP can be requested once in twelve months and it allows borrowers to pay back the loan in small and affordable installments without paying penalty fees.

Direct Loans Lenders’ advice: EPP is a great option, but can be used only once in 12 months.

How to request one of these payment options?

In order to request any of these payment options besides “Full Payment”, contact your lender at least two business days before than the loan’s due date.

Yes, we take care of our customers!

For peace of mind, select “Payment Reminder” checkbox during the application process. We will send an e-mail with the total loan balance, payment day and available repayment options!

Direct Loans Lenders’ advice: make sure you provide a valid e-mail address. This will guarantee you don’t miss any important messages from us or your lenders.

References and Sources

1. PayDay Loans Repayment Process and Terms. Retrieved from

2. Payday Loan: Your Rights. Retrieved from