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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.
⚠️ Warning: Be cautious with payday loansPayday loans are expensive. If you're experiencing financial hardship call Credit Counselling Canada for free financial counselling (Monday-Friday 8:00am-5:00pm at +1 866-398-5999). Consider alternatives instead of a payday loan:
- Local resources. Government programs and nonprofits offer free financial services and help with food, utilities and rent.
- Debt relief companies. There are services to help you reduce your debt payments.
- Payment extensions. Talk with bill providers about longer payment plans or due-date extensions.
- Side jobs. Sell unwanted items online, sign up for food delivery and more.
Compare payday loan options
Maximum borrowing costs per provinceAlways refer to your contract for exact repayment amounts and costs as they may vary from our results.
|Province||Maximum allowable cost of borrowing|
|Alberta, British Columbia, New Brunswick, Ontario & Prince Edward Island||$15 per $100 borrowed|
|Manitoba & Saskatchewan||$17 per $100 borrowed|
|Nova Scotia||$19 per $100 borrowed|
|Newfoundland and Labrador||$21 per $100 borrowed|
|Northwest Territories, Nunavut & the Yukon||$60 per $100 borrowed|
|Quebec||Limit of 35% annual interest rate (AIR)|
Which companies allow you to pay off a payday loan early?
The following Canadian payday loan providers are just some of the lenders that allow you to payoff a payday loan early – and with no penalty or early repayment fees.
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.
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