Debt is rampant in the US.
Altogether, Americans owe almost $13.3 trillion dollars collectively. That’s a shocking figure!
Of course, there are many ways to get into debt. Of all of them, payday loans are particularly common. The premise is simple: get a loan fast, then repay the debt at your next paycheque.
Alas, due to enormous interest rates, it’s easy to default. Fees escalate and debt increases. It becomes a vicious cycle. Stuck in this predicament?
Keep reading for 5 steps to pay off payday loans fast.
1. Cut Spending
Let’s face it, you need more money.
In general, there are only two ways to do it: spend less, and earn more. Let’s start with the former.
It might not feel like it, but there is almost always a way to slash current spending. Unfortunately, it normally entails a level of sacrifice! Eat-in more. Prepare lunches at home. Cut subscriptions. Downgrade your phone, car and/or even your house.
Do what it takes to reduce your monthly outgoings. You might just recoup enough money to pay off your loan amount.
2. Earn More Money
Next step? Earn more money.
Again, this may not feel possible. However, to have got the payday loan, you’ll almost certainly have a job. The easiest way to get more money is to negotiate a raise. Organize a meeting with your boss to increase your salary.
No dice? Then look elsewhere for some extra side income. Sometimes you have to do what it takes. Become a dog walker. Start freelance writing. Sell handmade goods online. Heck, set up a lemonade stand outside your home! Do what you can to raise your monthly income.
3. Sell Your Things
Still struggling to pay off the debt?
Consider selling your things. This can be one of the quickest ways to generate some much-needed cash. Look around your house to see what you no longer need.
Try holding a garage sale, or advertise on Craigslist.
Similarly, you could try pawning your valuables. Of course, this is hardly ideal, but if it gets you out of vicious payday debt, then it’s arguably well worth it.
4. Consolidate the Debt
The 4th step is to consolidate the debt.
In other words, you take on a new loan to repay the first one.
Now, taking on further debt to get out of debt probably feels backward. It definitely isn’t ideal. However, given the extreme interest rates on your payday loan, this isn’t a bad bet. If you can find a cheaper loan (aka with lower interest rates), then it can remove some financial pressure.
Search around online to see what’s available to you.
5. Budget Effectively
The final step is to budget more effectively.
With your payday loan consolidated, you don’t want to get into further financial problems. That requires a budget. Sit down and figure out your monthly income and expenditure.
Then plan your finances accordingly. Allocate particular sums of money to certain needs, including paying off your debts! Keep track in this way should allay future debt struggles.
These phone apps can help you get started.
Time to Pay Off Payday Loans
There you have it: exactly how to pay off payday loans as fast as possible.
Increasing numbers of people are taking on expensive loans to deal with their financial woes. The debt crisis in the US is reaching a tipping point.
Unfortunately, getting into debt can be a slippery slope. It’s easy to get caught in a cycle of missed repayments and additional fees. With high-interest rates, before long you can be in dire financial straits.
Sound familiar? Hopefully, this post will help get you out of trouble.
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