How to Get Rid of Payday Loans for Good
Financial debt has been on everyone’s mind economic crisis lost jobs mortgages and bankruptcy have become a reality for many. Some have turned to payday loans for relief only to find that they have started a vicious cycle of adding more debt to be repaid. Interest rates on these kinds of loans are astronomical even into the triple digit percentages. There are no easy answers to how to get rid of payday loans but there are several ways to start to eliminate the debt.
Understand your current financial situation
First thing anyone that wants to get out from under payday loans needs to do is examine their economic situation. That means writing everything down that you spend understanding where you are spending every penny. Also write down every avenue you make money and how much you receive. Getting out from under payday loans means you have to have a plan and that starts with know exactly what you have going out and coming in to your household.
The next thing you need to do is make an initial budget. This budget will be one that you create for “tight” times. It should include household necessities and work related expenses. You will include only the necessities. Once you determine exactly what is it you must have to survive you use the lists you made about your spending habits and highlight everything that is not on your necessity list. That is a starting point in locating money to be put toward your payday loan debt.
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This is a hard one. You must generate additional money to get out of the cycle of debt that payday loans create. There are many ways to make additional money some as easy as having a garage sale or selling items online for cash. Asking family and friends for loans is also another way to raise money to pay back a payday loan. Just remember to pay them back when you agreed to so that your relationship does not suffer. Finding a second job is an option even if just temporarily to get your financial situation under control. There are many ways to generate a temporary or short term income that have advantages over taking out a payday loan.
Make a deadline
At this point it should be easy to make a deadline to have the debt repaid. A looming deadline often gets things done. So write it down circle it in red on your calendar and know that your goal is to have the debt paid by that date no excuses. If something happens that funds are short find more ways to generate the income to get that debt paid by the deadline.
Renew your budget
Once you repay the payday loan stick with your plan for just a little bit longer. Now that you have generated the income to pay your debt go a step further and create an emergency fund account. That way if something comes up in the future you will be able to borrow from yourself instead of getting yourself into debt again. Evaluate your budget after any unexpected withdrawals from your account that has to be made or every year depending on your situation.
Seek professional assistance
If after organizing your budget and looking for ways to generate additional income your payday loans are still a problematic situation for you seek help from the professionals. Debt consolidation may be an option for you to consider if you have additional debt as well. They can assist in creating a plan to eliminate your debt. It takes hard work and sacrifice to get out of a cycle of debt but with determination and persistence there is relief.