Today’s post on Payday loan help is from Good Nelly. She is a professional content writer who has written many articles about managing your personal finances particularly your debt.

tips to get out of payday loan debt

Payday loans! The term itself is a bit worrying since many of us know the association of high-interest rates with it. Payday loans are helpful if you’re able to pay them back with your next paycheck. But, the worst thing if it takes you more time than that. The interest starts accruing and it becomes unmanageable in no time.

A most common circumstance is that you take out another payday loan to repay the previous one and by doing so, you fall into the payday loan debt trap. Soon you are looking for payday loan help.  

So, let’s see what you can do if you’re worried about how to get rid of your payday loan debt. 

Before going into the discussion, first of all, check out whether your payday loans are legal or illegal. If they are illegal, you just have to repay the principal amount. 

Now, let’s see options to repay your payday loans. 

Payday Loan Help Options

Payday loan help option #1: Enroll in a payday loan consolidation program

If you want complete professional help to manage and repay your payday debts, you can opt to consolidate payday loans with bad credit. It is a good idea, especially if your credit profile is not that good. 

First of all, select a good and reliable debt consolidation company. Then, fix an appointment and discuss your financial condition with the counselors. The consolidation company will decide upon a monthly payment that you need to make to the organization. It will also negotiate with your lenders to reduce the interest rates on your debt. Once you make the payment to the consolidation company, it will disburse the amount amongst your creditors as per agreements. 

You can include all unsecured debts along with the payday loans in the consolidation program and pay them off within a definite time. 

Payday loan help option #2: Take out a suitable loan to repay your payday loans 

This would be a great option for you if your credit score is good. This is because a good score can help you take out a loan at a suitable rate of interest.

However, even with a lower credit score, if you’ve been a loyal customer and your rapport is good with a bank, you can take out a loan at suitable terms and conditions. 

A consolidation loan is like a personal loan that you can obtain from a financial institution. You obtain a loan whose interest rate is less than the subtotal of your existing unsecured debts like credit card bills, medical bills, payday loans, and utility bills. You take out this loan of an amount that’s sufficient to repay all your existing dues. Once done, your multiple debts get replaced by a single loan. Now, you have to repay the new loan through single monthly payments over a definite time. 

Payday loan help option #3: Try to settle your payday loans with the lenders

Often it becomes a little difficult to repay your payday loans in full. In such a situation, you can opt to settle your payday loans by paying less than what you owe. 

Here also you can enroll in a settlement program and get rid of your debts through professional help. You make a monthly payment to the settlement company. They accumulate that amount in an escrow account. In the meantime, it negotiates with your lenders to reduce the payoff amount. Once they agree and a sufficient amount gets accumulated in your escrow account, the settlement company uses the funds to pay a lump sum amount to the payday lenders and the accounts are settled one by one. 

If you think you have negotiation skills, you can settle debts on your own. Just you have to convince your payday loan lenders that you won’t be able to repay the outstanding amount in full. In most cases, they will agree if they are convinced about your financial situation. 

Payday loan help option #4: Opt for an Extended Payment Plan

As per the CFSA (Community Financial Services Association of America), you can apply for EPP (Extended Payment Plan) program if you’re not able to repay your payday loans. This program allows the debtors to repay the outstanding amount in several installments over a few weeks. However, you’ll have to pay a fee if you skip any of the payments. 

You can also ask for payday loan help in the online forums. Here experienced people can help you get out of debt and manage your finances in a better way. You just post a query and experienced people will offer tips and suggestions to solve your debt problems. 

So far we have discussed the direct options to repay your payday loans. Now, let’s check out some tips that can indirectly help you deal with your payday loans and pay them off. 

Payday Loan Help: Tips To Pay Them Off Faster

Tip #1: Try to increase your income 

Everyone talks about saving; but, how much can you save if your income is not high? So, it’s better if you try to increase your income. When you can do that, you can use the additional amount to repay your payday loans.

If you’re in a job, you can talk to your manager and ask for a hike. Discuss with him/her what additional responsibilities you can take to increase your salary. You can also opt to work overtime and use the extra money to get out of debt. Or, you can utilize your leisure time to work part-time too. 

Tip #2: Save as much as you can

Now comes the obvious tip. Save, save, and save! My friend, you need to save when you want to solve your payday loan debt problems. Make a budget and see where you can curb your spending. Often, little expenditure goes unnoticed. But, saving that much helps to accumulate funds to repay debt.

Tip #3: Sell items you don’t need

If you look at your home, you’ll often find items that you won’t need anymore. Collect these items. Now, arrange a garage sale of these items. It will also help others as they can buy items at a discount price. Doing so, you can make your house clutter-free. And, you’ll be astonished by how much you can earn by selling the items. 

Tip #2: Save as much as you can

Again, it has dual benefits. First of all, you can save a significant amount if you carry your lunch to work. Secondly, it’s a much healthier option as you can control what you’re putting in your food. Also, restrict eating outs to as little as possible. Instead, make weekend cooking a family affair and enjoy quality time with your spouse and kids.

In addition, talk with your family members and make a meal plan for the entire week. Believe me, it will save you a lot of time. 

Tip #5: Rent a portion of your house

Do you have provisions for 3 cars in your garage but you have one car? If yes, then you can rent a portion of your garage. Likewise, you can also rent an extra room in your house if it doesn’t hamper your privacy.

And, the most important thing. Start an emergency fund so that you don’t have to take out payday loans ever. Deposit a certain amount every month into this fund and try to save about 3-5 months of your living cost. This will come to a great help during a financial emergency. Also, plan a realistic budget and manage your expenses in a way that you can have a secure financial future.

Author Bio: Good Nelly loves to analyze the day-to-day financial happenings along with critically analyzing the changing rules of credit, debt, insurance, mortgage, etc. related matters. She loves to share her analysis with others thus helping people to understand the exact scenario. She also maintains a blog My Way Of Viewing where she writes about her experiences.

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