If you’ve got bad credit or no credit there aren’t a lot of ways to borrow money.
One option available to anyone who’s employed is a payday loan online.
They have high interest rates but they’ll get you money when you need it, fast.
The real key though is paying back your bad credit loan after you’ve borrowed it.
Keep reading to find some of the best ways to pay back your payday loan and explore monthly installment payday loans.
Make a Budget
The easiest way to get out of a payday loan is to just pay it back. If you can create a sensible budget and stick to it you can make payments on time and discharge your debt.
What can be harder is staying out of debt once you’re there. It’s tempting to take out another loan if something comes up.
Payday loans themselves usually aren’t that bad. The interest rate is high but they offer lending services to people locked out of the traditional financial industry.
What trips a lot of borrowers up is loan extensions. If you take out a two-week loan you agree to pay the principal back, plus interest and fees, on your next payday.
Something comes up though and you can’t make the full payment. Instead, you pay an extension fee that allows you to put your full payment off for another two weeks.
This doesn’t touch the principal amount of the loan or the original interest payment. You’re basically paying the lender for the privilege of borrowing money an extra two weeks.
Monthly Installment Payday Loans
A newer product is a monthly payday loan. Instead of a single lump sum, you make smaller payments over time.
This is a lot more like a traditional loan and is easier for people to cover. Even if they can’t get the full amount of the loan together all at once they can make small monthly payments.
The average payday loan amount is just $350. Paid back over six to nine months borrowers have a much better chance of getting out of debt.
If you’re choosing between different payday loan providers try to find one that offers monthly installment loans.
Ask About Extended Payment Plans
If you find just making standard payments difficult you might try talking with your lender. There’s a good chance you can negotiate a new payment schedule or change the terms of your loan a bit.
Don’t expect anything crazy though. Adjusting the terms of your debt usually means you’ll pay more over the long term than you would have by paying it off.
If it’s the difference between defaulting and not though you should definitely take it.
Get the Money You Need, When You Need It
Monthly installment payday loans allow you to borrow emergency funds quickly and easily. They’re one of the only lending vehicles available to people with poor or no credit. Make sure you find the best lender possible before signing anything.
Check out our learning center to learn more about payday loans and other lending options available to people with bad credit. Here are some other articles you might find helpful: