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Can you pay off your payday loan early?

Learn how you can save if you pay off your payday loan early.

If you know you’ll be able to pay off your payday loan early – great! Repaying early can save you money in interest fees and make your budget easier to manage. However, not all lenders have the same rules in place when it comes to repaying your loan early, so if you’re planning to do so, it’s important to ask ahead of time if there are any restrictions on paying it back early.

How to find out if you can pay off your payday loan early?

If you know ahead of time that you’ll be able to pay back the loan quicker than the term offered, you’ll want to check to see if you will be able to pay off, or settle, the loan amount early without facing any additional fees or penalties. If it isn’t immediately apparent when looking over the loan terms and conditions, be sure to contact the lender and ask this question specifically. Always double-check the contract before you sign and agree to the terms.

Find out how much lenders can charge across Canada

How to repay your payday loan early

When you’re ready to pay off your payday loan ahead of its due date, make sure you do the following:

1. Check your loan contract

Your loan contract will establish any fees or penalties you might have to pay, as well as any stipulations regarding early repayment of your loan. It’s best to be aware of these before you get in touch with your lender.

2. Contact your lender

The contact information for your lender will be listed on any correspondence, as well as on the lender’s website. You can usually contact lenders by email or phone, and some also offer online chat and in person assistance (if they have physical store locations).

Ask how you are able to repay your loan early, what fees apply and if any savings or discounts are available. You should also ask how quickly you can settle the loan, because the more quickly it can be settled, the more you may be able to save on interest fees.

3. Pay out your loan

Follow the instructions given to you by the lender to ensure the loan is paid out correctly. After you pay the loan out, make sure your loan account is closed to avoid any extra charges that are added by mistake to the account.

Everything you need to know about payday loans

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