What Does It Mean to Renew or Roll Over a Payday Loan?

While payday loans are known for having a short repayment period, typically ranging anywhere from two weeks to 60 days, sometimes it’s hard to come up with the extra money to pay back the loan. This is particularly true if you borrowed the money to help with an emergency situation and things haven’t settled back down yet. Payday loans do offer options, however, when you can’t make your payment on time. Renewing or rolling over your loan can give you extra time to save the money you owe without defaulting on the loan. Read on to find out how this process works.

Rollovers and Renewals

When you can’t pay your loan on the original due date, you have the option to renew the loan (also known as rolling it over). Rather than paying the full amount you owe, you instead pay just the original fee that was added to your loan principal. Next, your lender will issue a new due date plus add an extra renewal fee. Your next amount due will include both of these amounts.

Here’s an example: if you originally borrowed $500 with a $75 fee, you must pay the $75 on your initial due date. When the lender rolls over your loan, you’ll still owe the $500 plus another $75 for the new fee. This option is good when you are still cash strapped, but those fees can quickly add up if you keep renewing the loan.

Try to pay it off as quickly as possible so you can stop paying additional renewal fees.


  • Some states prohibit or limit the number of times you can rollover a loan.
  • Let your lender know in advance if you can’t make your payment. This will help you avoid paying overdraft fees if they try to cash your check or debit your bank account.

Everyone has moments when their bills catch up with them and they simply can’t make every single payment. Understanding your renewal options with a payday loan can help you manage your money as best as possible while hopefully making at least the minimum payments on everything you owe.

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