3 Ways to Rid Yourself of Payday Loan Debt

Payday loans can be a great way to find your way out of a financial bind that requires quick cash.  But sometimes, you don’t have the money to pay the loan back on the due date. So, you extend the loan to the next pay date. But what do you do when you find yourself faced with yet another urgent financial matter? Well, if friends and family can’t help - and your savings is dry - you may be tempted to take out yet another payday loan. The problem with this is you run the risk of having to extend your second loan as well.

If you’ve got two or more payday loans that you can’t seem to pay off, it can start to feel like you’re trapped in a vicious cycle! How do you find your way out of something like this? The best place to start is by making a household budget first, to see exactly what you’re working with. Then consider these options…

Here are 3 ways to get yourself out of payday loan debt:

1. Cut back on your expenses and pay your loans off one at a time. This one requires some discipline, I’ll admit, but it can be done.  You’ve got to take a good look at what your payday loan debt really looks like at this point.  Make a list of the payday loans you’ve got, how much the fees are for every loan period, and when they are due. Then, take the one that is costing you the most money and make it your priority to pay it off first.  Call your lender and see if they will allow you to “pay down” your loan without a penalty.  This means you pay the fee required to extend your loan plus a little more to go towards the principle amount borrowed.  If they allow you to do this, then decide what amount you can afford to pay in addition to the extension fee on every due date until it’s paid off.  Cut back on other household expenses if you need to. Then, repeat this process for the 2nd payday loan (and the others too, if you’ve got them).  Some lenders don’t allow you to “pay down” your loans, so you may need to bite the bullet and pay the loan off in full, and then cut back and find other ways to make ends meet for awhile until your loans are paid off.

2. Call your lenders to discuss your pay off options. Your payday lenders want their money back, but they also know times are tough right now. Many will allow you to “pay down” your loan (as described above), but some will even put you on a payment plan and halt your loan fees/interest to help you out.  Be sure to discuss what being put on a payment plan means for the future of your payday loan account with them.  If you want to keep your account open so that you can use it again in the future (should the need arise) be sure that they will allow you to borrow again in the future if they put you on a payment plan.  Some will and others won’t.  Some will review your account and make this decision based on the type of customer you’ve been in the past. Others may lower your payday advance limit to ensure that you don’t find yourself in a situation like this in the future.

3. Consider getting a consolidation loan to pay off all your payday loans. If you can find a traditional long term lender that has reasonable rates and can lend you the amount you need to pay off all of your payday loans, it may be well worth it.  Some people prefer to have only one payment instead of juggling two or three (or more). Often times a consolidation loan of this kind can decrease the total amount you pay per month as well, and it can enable you to only have one payment per month, instead of various payday loan fees every couple weeks.  Paying off your loans this way will also help keep your payday loan accounts open - in case you need them in the future.  But beware, you must still exercise some discipline and make every effort to pay the consolidation loan off as soon as possible. This will probably still require that you cut back on expenses and avoid the temptation to take out a bunch of payday loans again.

The Get Cash 911 Blog is a leading source of money saving tips, debt management, credit repair, cash payday loan information, coping with financial stress, coupon offers, and payday cash advance details. If you find yourself in need of quick cash, visit PaydayLoanToday.com or just click below.