Before borrowers will be approved for a loan, they will learn how the lender expects them to repay it. If the terms are acceptable to the borrowers, they will take the loan and sign the contract. One of the terms the lenders will disclose is when the monthly payments will be due. When the borrowers sign the contract, they will be agreeing to make these monthly payments on or before the lender's specified due date. If the borrowers make their payments one day after the due date, this is called a late payment. The late payment may be subject to extra fees, making the loan more expensive than it would ordinarily be. To avoid making a late payment, borrowers can ask to set up automatic payments with their banks so that their accounts will be debited on or before the due date. This eliminates the borrowers' need to write a check and mail it and eliminates the possibility of making a late payment.