Discover Debt Freedom!

Desperate times call for desperate measures.  If you got a payday loan to get yourself out of a financial jam previously, chances are you’re struggling more now than you were before you got the loan.  In theory, a payday loan helps you make it from one paycheck to the next; but the majority of people are unable to pay the loan back by their next paycheck.  The result is exorbant interest fees and finance charges that are far more than the amount you borrowed.  The longer you take the pay the loan back, the worse your financial situation becomes.

If you have a payday loan, you  need to find a way to pay it off and then avoid using them in the future.  They seem to be the answer to your financial prayers when you get them – but quickly become your recurring nightmare when they’re too difficult to pay off on time.

Here are some suggestions for getting out of payday loans:

Borrow from a friend or family member.

Most everyone has a friend or family member they could turn to in times of need.  Having a payday loan you’re not able to pay off immediately classifies as a time of need!  You can work out a reasonable repayment schedule (with or without interest).  It may hurt your pride a bit to have to ask for help, but if you don’t pay off the payday loan, you’re going to continue growing more debt through the finance fees and high interest. 

Ask for an employee loan:
If you don’t have close friends or family who can or are willing to help, you  may be able to get a cash advance, or borrow money, from your place of employment.  Some companies will loan money to employees for an agreed upon payment out of each of your paychecks until the money is paid off.  It’s not something you can expect to make a habit of, but if you’re able to get a loan from your employer, you can use it to get yourself out of the payday loan that is causing you ongoing financial difficulty.

Set up a budget and repayment plan.

If you are unable to obtain the full amount of money you borrowed from another source to pay off your payday loan, you have to set yourself up with a budget and payment plan.  Your payday loan has a repayment schedule that you agreed to when you obtained the cash.  The longer you take to repay your loan, the more it will cost you.  It’s in your best interest to do everything you can to send more money to pay it off quicker.

Cancel all unnecessary expenses to free up more money in your budget.  You can stop eating take out or going to restaurants and apply that money directly to the payday loan.  You can cut back on utility use, eat spaghetti at home instead of buying steaks, reduce or cancel your cable television bill.  There are many ways to reduce the amount of money you are spending, and each time you find a way to reduce your expenses use the difference in spending to pay down your payday loan.

If you can take on odd jobs or work overtime, now is a great time to do so and use the extra money to pay off the loan.  As soon as you pay off the loan, work on getting money in the bank so you’ll never be tempted to use a payday loan again.