How Can I Get out of Paying My Payday Loans

Christine Tan

Are burdened with making payments? We know how discouraging it can be when you have to deal with several payments each month. Is there anything that you can do to get out of this condition? There is a lot that you can do to salvage your condition. Let us take an example of one type of loan – payday loans.

When faced with an emergency, payday loans can save you. These loans are very accessible and do not have a lot of eligibility requirements. In many cases, a proof of income and a bank account qualified individual who had attained the legal age. While lenders examine the credit score of borrowers, they do not put a lot of focus on it like traditional lenders. It takes a short time to apply and get approved for payday loans. Specifically, the application takes a maximum of 15 minutes. Some lenders take just two hours after the application is approved to deposit funds into borrowers’ accounts. This is the reason behind the recent popularity of payday loans.

When the deal is so sweet, think twice. While payday loans can help you in times of emergencies, you have every reason to avoid them. These loans are costly, and instead of salvaging your financial conditions, they more often make things worse. With high-interest rates, the loans have a short repayment period, usually between 2 and 4 weeks.  Usually, making payments leaves with a deficit that makes it so difficult to cover all your expenses for the month. If this happens, there is always a snare to reapply again.

You will discover you are in the vicious cycle of payday loans when it is already too late. There is also an option of rolling over a loan in case you cannot afford the payment. However, the fee charged for this option is very high. For instance, a rollover of a loan of $100 often requires a fee of $30. Imagine rolling over six times! Payday loans are predatory, and you should only opt for them when it is necessary. Even it times of emergencies, it pays to consider other alternatives. What can you do in case you are overwhelmed with making payments? Here is how you can get out of paying your payday loans. 

  • Consider debt consolidation

As we earlier mentioned, there is always an option of renewing the loan.  However, this option is costly, and you don’t have to consider it. Instead, consolidate your payday loans with a cheaper and affordable loan from a1Credit then you can then begin paying off the consolidation loan. If you consider this option, do not again borrow too much. Only take an amount that is sufficient to pay off the loan and perhaps an extra amount that can sustain you through to the next payment.

It would help you to aim to get out of debt. Well, taking a consolidation loan to repay another loan may seem as if you are not making any headway. But that is not the case. Remember, you are aiming at getting out of expensive payday loans. You can benefit a lot from the interest savings. Also, you will be given a consolidation loan at better terms. For instance, you are going to have sufficient time to repay the loan.

  • Create cash

One of the best things to do in this condition is looking for extra cash to repay the loan. You have several options for doing this, though it boils down to two things; look for more income or lessen your expenses. None of these options is easy, but they are most appropriate. Let’s look at each of them.

  • Increasing income

The best way of improving your income is to find additional work. It doesn’t mean that you have to look for permanent work. You will only hassle over a short period to pay the current loan fully. But if you need extra cash beyond what you are currently surviving on, you may have to hassle throughout. There are two ways of looking at matters here. The additional cash that you are looking for will save you on the payments and the high interest that come with payday loans. Also, if you continue to repay the loan, there will be no need to borrow again.

Where can you work? Consider the skills that you have. You can be a freelancer on part-time. Individuals write articles and poems online and are paid quite well. Alternatively, you can work overtime if there are such provisions in the company you are working with. You can also ask for a promotion or ask for a pay rise. In case these options do not work for you, you can seek another job altogether. 

  • Sell stuff

Another way of increasing your income is by selling possessions. Just like getting additional work, it is not a walk in the park. However, it is much better compared to incurring finance charges. In case you are not comfortable working more, consider selling the stuff that you are currently not using. Use the proceeds to pay off the payday loan. When your financial situation stabilizes, you can again acquire them.

  • Lessen costs

Is bringing in extra cash impossible? You can cut your spending until you are back on your feet again. This may mean trimming your budget significantly. It is also not easy because it’s like lowering your standards of living. But then, this is only a momentarily thing that should be motivated by your current financial situation.

  • Ask for help

You can also talk to a friend who understands your situation. Take a loan from him and use it to repay the loan. Once the payday loan is paid off, focus on paying back the loan from your friend to avoid compromising your friendship.

The Bottom Line

Payday loans can help you in times of emergencies. However, try your best to avoid them. As discussed here, the loans may end up damaging your financial condition rather than helping. What can you do to pay off the loans? We have discussed some of the strategies that can help you. Put them into practice, and hopefully, you will succeed.

About Retire Early Lifestyle

Billy and Akaisha Kaderli retired three decades ago at the age of 38 and began traveling the world. As recognized retirement experts and internationally published authors on topics of finance and world travel, they have been interviewed about retirement issues by The Wall Street Journal, Kiplinger's Personal Finance Magazine, The Motley Fool Rule Your Retirement newsletter, nationally syndicated radio talk shows and countless newspapers and TV shows nationally and worldwide. They wrote the popular books The Adventurer's Guide to Early Retirement (Your Simple Path to FIRE) and Your Retirement Dream IS Possible.
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