How to Get Rid of Payday Loans with a 5 Step Plan to Escape the Cycle
If you're tired of always borrowing from payday loan companies, have multiple payday loans, and are wanting to know how to get rid of payday loan debt, we'll show you how in 5 practical steps. Your finances will thank you for years to come as it will be a lot easier to pay the bills every month. As you've no doubt experienced, even though it's not hard to get a loan from a payday loan store or use an online instant loan service, you can quickly feel stuck in a constant cycle of borrowing and need some payday loan help. The good news is, though, that it's possible to get out of this cycle of constantly needing payday loans with some careful planning. Here are the steps to stop and escape the cycle:
1. Create a Personal Budget
The first thing to do is to put together a realistic personal budget which includes all your monthly and weekly expenses and other financial obligations. Putting a realistic budget in place is going to let you see what you have the ability to pay back. Hurrying to pay the loan off one or two months sooner might just create more financial problems down the road.
2. Contact the Payday Loan Lender
Once you have figured out what amount you can manage to pay on your loan every month, communicate with the payday loan lender or company that you won't be able to pay the entire agreed-upon payment on time. Inform them of what you can pay, how frequently they can count on your payment and ask for their understanding with your modified payment schedule.
3. Consider Opening a New Bank Account
Bear in mind that when you received your payday loan, you signed to allow the company to take payments straight from your bank account. If you're unsure that they will honour the modified repayment terms, it may perhaps be helpful to setup a new bank account to prevent the worry that a debit for the whole loan amount is going to be pulled from your account the next time you get paid.
4. Plan Ahead for Emergency Expenses
Once your loan is completely paid, have a look at your budget again with a view to balancing it better by saving a bit every single month for yearly expenses such as maintaining your vehicle. Remember to also save money for emergency expenses, because like it or don't like, sometimes things just happen in life.
5. The Bottom Line with Payday Loans – Ask for Help If You Need It
If you're in need of some free help and advice to manage payday loans or other debt, don't hesitate to speak with a reputable, Canadian not for profit credit counselling organization. You'll feel a lot better with a solid plan that puts you back in charge of your money. It's possible that their help could also include payday loan debt relief, but at the very least, you'll get expert advise on how to pay off payday loans as quickly as possible and get out of debt.
- Prepare for Unexpected or Emergency Expenses
- How to Communicate with Creditors When Dealing with Debt