How to Pay Your Outstanding Payday Loans
How can you ever get yourself out of this mess? With some knowledge, you can settle your outstanding payday loans via various strategies.
Consolidate your outstanding payday loans
This strategy applies to people with multiple outstanding payday loans. If you have trouble paying these multiple loans, you might consider approaching a debt consolidation company for help. Debt consolidation companies usually offer free debt counseling, which allows you to talk about your financial troubles, ask questions about payday loans, and get advice on what are your best options.
The advantage of hiring the services of a debt consolidation company is that the company will negotiate with the payday loan companies you borrowed from while particularly negotiating for easier terms of payment for you. The company can negotiate for lower interest rates for you and perhaps a longer payment period, if that is what you need.
First, you have to work out exactly how much you will be able to pay each month. The debt consolidation company can negotiate with the companies that sold you their payday loan services based on that.
Another way to consolidate your multiple payday loans is to borrow money from a source that charges a lower interest rate. For example, if you have a credit card, ask if they are offering cash loans for a low interest rate. If the amount they are offering is enough to pay off your multiple payday loans and at a lower interest than your payday loans, then you might want to get the credit card cash loan.
Also check if you are qualified for your bank’s overdraft because you may be able to get a loan amount that is enough, or almost enough, to pay off your payday loans at a lower interest
The key here is to take advantage of different loan services with lower interest rates and better payment terms. There are existing companies that can help you pay off your outstanding payday loans, but you just have to research to find them.
You might not have to pay some of your outstanding payday loans
Familiarize yourself with the law, particularly the law in your state regarding payday loans.
Find out if your debt to the payday loan company is still within the statute of limitations. If the statute has expired, then you do not have to pay the loan. If the payday loan service company keeps harassing you to pay, you can then file a legal complaint.
Also, note that payday loan companies usually renew your loan automatically every month by debiting from your bank checking account. If you have insufficient funds in your account and the payday loan company debits from your account, it can result to a finance charge, which is yet another burden to your pocket.
While canceling the automatic withdrawals will not pay off your debts, doing so will at least prevent your debt to increase further.
The automatic renewal of unpaid payday loans is one of the main culprit of people going deeply into debt before they realize it. The automatic rollover of payday loans into the next month or next specified period translates to interest and other charges.
What to do to avoid further debt
Find creative ways to reduce your spending. For example, instead of taking a cab, you might want to walk, which also promotes healthy living. If you cannot walk or it is too far away, then rely on public transportation instead.
You can also think of ways to conserve energy in your home. For example, do you really need to keep the air conditioner on for a long time?
Run an inventory of your current monthly expenses. Is there something there that you can cut down or do without?
Lessening your spending can be tough at first, but know that it will help you get to the finish line faster, which is to pay off your debt. Once you do pay off your outstanding payday loans, then that is the time you can treat yourself a little and celebrate.The key here is to successfully pay off your outstanding payday loans and, at the same time, make sure that you will be financially stable enough to not need a payday loan in the future.