7 Awesome Tips to Pay Off Your Payday Loan

If you’ve taken a payday loan and are looking for help with payday loans, you’ve come to the right page. There’s no need to panic, as there are several ways to get out of payday loan debt.

Such loans offer the best means of covering any emergency expenses that comes up in between two paychecks.

What is a Payday Loan?

They are small amounts of money that are borrowed before the payday by way of a short-term loan and must be repaid on the next payday.

These loans normally range from around $50 to $1500 and come with a flat fee based on the amount loaned.

Paying Off Options

When the time to pay comes up, there are several options to pay off payday loans, which depend on the lender:

  • Payment using Debit Card
  • Payment with Cash
  • Automatic payment from Bank Account
  • A Post dated check

Awesome Tips to Pay Off Your Payday LoanDon’t Panic

However, many consumers availing of such loans have actually entered a trap due to the high interest rates.

I’d like to share with you some top tips for paying of your payday loans as quickly as possible, in order to stay in a healthy financial position.

First things first – Don’t panic.  You are not in this situation alone.

  1. Automate your Payment

You will get a loan only if you have a steady and stable income.  With an automated mode of payment, the money to be paid to the creditor is automatically sent as soon as your pay is deposited in your bank account. An automated mode of payment is beneficial in several ways:

  • It is possible that you might spend the money and don’t have the funds to repay the debt on the next payday.
  • At times, you could forget about making the loan payment after receiving your paycheck. In this case, you will have to pay more as part of late fees.
  1. Smaller Payments

If automating the loan payment doesn’t work for you, try making smaller payments.

  • It reduces the burden for the month.
  • You can try to make some additional cash the next month in order to pay off the extra amount.
  • Try to make payments in the middle of a month if possible.
  1. Cut Down Expenditure

You are already in debt and have borrowed such a loan. It makes sense to be careful in your expenditure and tighten your belt, so to speak.

  • Stay focused on being economical.
  • Create a budget plan for the month and try to see where you can cut down your expenditure for the month.
  • Get rid of your expensive monthly cable plan and opt for something more basic. You might watch less of TV ads, which usually make you spend more on account of the endless ads.
  • Get rid of expensive smartphone plans.
  • Reduce the grocery and eliminate unwanted splurging on food.

It will help you pay off the debt sooner.

  1. Payday Loan Debt Consolidation

Opt for payday loans consolidation plans that can bring down the fees and even waive off additional charges. Get a more affordable payment plan.

There are many companies offering plans for payday loan debt relief. But the amount you may have to pay depends on:

  • The number of lenders willing to cut down the interest rate on your loan
  • The number of outstanding loans in your account
  • Your payment affordability

What is a Payday Loan

Pros of Consolidation

  • All loans are now consolidated into one easy to manage loan
  • There are no advance fees
  • The interest rates are lower
  • No late or extra fees
  • No automatic debits
  • Single, easy monthly payment
  • Reduced collection calls from different lenders
  • Easy to track
  • Psychological Advantage
  1. Getting another Loan

You could avail loans to pay off debt. Though there is a possibility that this could get you into a vicious cycle, it could be the only option for some.

  • Get an advance from your employer in order to get a loan to get out of debt
  • Borrow some money from a savings account
  • Ask a friend or a relative to give you the money to tide over the crisis and get a loan to pay off payday loans
  1. Payday Loan Forgiveness

If all else fails, get help immediately and try for payday loan debt relief. There are many debt charity organizations that can offer you good advice and help paying off payday loans.

You have some rights while dealing with such loan lenders. They can help you put your finances back on track. Remember, you are not the only one availing of such help.

National Debtline had received calls from 20,000 people regarding payday loans. This is a 94% increase compared to the previous year and an increase of 4200% after the credit disasters in 2007.

  • First talk to your loan lender
  • Try making arrangements for a modified repayment plan
  • Know your rights
  • Get your lender to give you a reasonable amount of time to make the repayment
  1. Getting Payday Loan Assistance

There are organizations out there that may not be able to lend you money, but can assist you in obtaining better repayment terms from the creditor.

You can get reduced loan fees, a better repayment period of 6 months to 12 months, instead of every month. However, you may have to pay a minimal fee to the assistance organizations.

What Happens if you Don’t Pay Off a Payday Loan?

Not a Legal Offense

  • The lender will try to get the money from your bank account
  • They will keep trying throughout the month
  • Lenders might even approach friends or your family members to take the money from their account
  • There will be additional fees to pay for late payment

However, if you fail to repay your loan, it is not considered a criminal or illegal act. As a matter of fact, it is considered illegal on the part of the lender to threaten you with jail.

If your lender threatens you with an arrest, you can contact the Attorney General’s office in your state for help. So, you can stop paying payday loans legally as well.

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