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how to get out of payday loans
31 May 2019

S.O.S: How to Get Out of Payday Loans

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Taking out a payday loan online is sometimes necessary to handle immediate, unexpected expenses. Things come up, and sometimes you need help to get out of financial jams.

So, although payday loans are necessary sometimes, they still have pretty high interest rates. This means that they can build up quickly after you get them, leaving you in an even more difficult spot than you were before.

It’s important to have a plan to pay off the bad credit loans before you take them out. Unfortunately, though, it’s not always that easy.

We’re here to give you some tips on how to get out of payday loans when you’re having a tough time.

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How to Get Out of Payday Loans

The first thing we should mention is that the last thing you want to do is get overwhelmed. This is hard because finances are extremely overwhelming!

If you can set the stress aside for a second, take a few deep breaths and try to think clearly about the ideas in this article.

1. Understand Your Debt

Sure, you know how much you’ve borrowed and you know how much you have to make in each payment, but do you really understand your debt?

Sit down with a pen and paper and determine how much money you are accruing in interest every day, week, or month, and draw up how much your online loan will cost you in the long-run.

Understanding exactly how much you’re in debt and how much more debt you’ll be in can help to contextualize the options you have moving forward. For example, you may be willing to sacrifice a little more if it means not getting into a crippling amount of debt in the near future.

Additionally, look at the debts that aren’t a part of your payday loan no credit check. It’s essential that you draw up a complete picture of your finances so that you know which loans you should be paying off first and which ones can take the back seat.

2. Consult With Your Loan Officer

Give a call to the lender that you got the payday loan from and get a clear understanding of your situation. Ask the lender basic questions about your repayment, your current debt, and see if there is anything that you don’t yet understand.

Once you’ve got a firm grasp on the situation, ask the lender if there are any alternative payment plans. You may be able to get a plan that is extended and easier to manage for you.

Extending your loan into an installment loan might result in a short term increase in interest related to how much you’re paying off, but smaller payments mean that you’re less likely to miss payments altogether.

Missing payments can result in late fees which simply get lumped on to your principal investment, which is something no one wants. Additionally, missed payments can reflect poorly on your credit and leave you in a tougher spot than you were before.

3. Consider Consolidation

The main thing about payday loans that makes them difficult to repay is the fact that their interest is so high.

If you’re deep in the hole, it might be smarter for you to take out a personal loan through a financial agency and pay off your payday loan with that money. Lending agencies will likely give you loans with far lower interest rates, saving you money in the long term.

The debt consolidation loan you receive will probably be larger than the payments due on your payday loan, though, so make sure that you take any excess and put it towards paying your loan off.

Spending that extra money on non-essentials will only make it more difficult for you to chip away at your debts in the future. Essentially, this plan is a way of lumping your payday debt into a loan with smaller interest, saving you money on the interest that you would pay under the payday loan.

4. Consider Speaking with a Debt Counselor

A financial advisor or debt counselor is a person who will take an informed look at your financial situation and pose a few solutions that could significantly help you to get out of it.

A lot of colleges, businesses, and institutions have viable, affordable debt counseling that you could seek out. Ultimately, the best person that you can speak to is someone who has a financial background and understands the ins and outs of loans, repayment, and different options available for people in debt.

Make sure that you work with someone who is reputable and trustworthy, though. A lot of people tend to prey on those in tough financial situations. Check to see if there are positive customer reviews and other signs that the company you’re working with is honest.

5. Ask for an Advance

If the issue is relatively contained and you just need to find money to cover the next payment, you might have the option of getting a payday advance from your employer.

If you’re open with your boss and can explain the situation, they might be willing to make an exception for you considering the circumstances. You might be surprised to find that your place of work is interested in your well being and would be happy to help you out with an advance.

Another option is to ask your friends and family for a small personal loan. Getting money from your loved ones is usually a viable option, seeing as they won’t require you to pay interest or damage your credit in any way.

At the same time, you want to be sure that you can pay back the people you’re loaning money from. Financial issues can be huge stressors on relationships, and the last thing you want to do is ruin a friendship over a small loan.

Interested in Learning More?

Figuring out how to get out of payday loans is essential if you plan to take one out in the first place. These loans can be excellent options if you have the means to pay them back.

If you’re interested in taking out a payday loan or learning more about them, visit our site for the information you need. Here are some other articles you might find helpful:

Payday loans online no credit check instant approval
Are instant payday loans worth it?
Short term payday loans vs personal loans – the complete breakdown