If you are finding it difficult to keep up with your payday loan repayment and your debts seems to keep growing, you are not alone. A payday loan can cost you far more than what you may have intended to borrow since they have high APR and interest, which makes them expensive and difficult to repay.
For many borrowers payday loan debt trap is a common experience, but there are several ways that makes it easy to get out of such trap. Below we have put together some of the steps that will help you pay off a payday loan fast.
Stop focusing on the amount of debt that you need to pay. Instead, get a picture of your complete financial status. This might help you find other opportunities to save or repay the debt. Keep a record of the loans as well as interest rates.
If you have more than one payday loan, know how much each debt is costing you and prioritize the one that has the highest interest rate. Paying off the debt with high interest and then moving on to the lower interest will cut down the total amount you pay every month. The worst part is that you will only get one month until your next paycheck to repay back the balance or you will have to pay extra fees to renew the loan. So, in order to get rid of your payday loan debt you will have to either restructure the debt or figure out how to repay back the amount all in one go.
Payday loans are expensive which makes it difficult to repay. If you are unable to repay opt for an extended payment plan (EPP). As per this plan, your loan will be split into smaller installment payments and it will give you more time to repay the loan. Besides, you will not be hit with extra interest or fee. You need to make such request before your loan is due.
If your payday loan lender in unwilling to provide you extended payment plan you can consider to refinance with a personal loan. You should keep in mind that a fair credit is neceaasry to qualify for most personal loans.
Various cheap and small loans known as payday alternative loans are offered by credit unions. Such loans can be an effective way to repay your existing payday loan and replace it with an affordable alternative plan.
Payday loan debt assistance and credit counselling programs are some of the resorts that can help you find a way out when you are with payday loans debts. Try to locate a reputable non-profit organization that offers debt counselling and assistance.
In order to get your finances on track, the first step is to figure out how to get out of payday loan debt. It may seem difficult but it is worth it. Without any payday loan debt hovering over your head, it will be much easy for you to build lasting financial security and boost your money management.