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Sep 23, 2016 This is what most payday lenders will offer if you are unable to repay the loan in full at the end of the term. The lender will most likely ask you to pay the interest for the first term and extend the loan into a second term. This means that you haven't actually paid off any of the principal by the time you start the 

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Payday Loans A payday loan is a small, short-term, single-payment consumer loan (discussed further in chapter 8). For this type of credit, the customer writes a personal check for the sum of the loan amount and finance charge and leaves it with the lender at the time of receiving the cash. The payday loan company agrees