Payday loans will fix your current emergency situation but will later leave you in financial burden. This is because when it comes to repaying, you are required to pay the total amount borrowed plus fees.
Most people who have taken payday loans often find themselves in a situation where they can’t pay back the loan. In fact, a majority of people end up renewing the loan and as a result, pay a larger amount in fees than the actual amount borrowed. Whenever you find yourself in such a position, ignoring the problem will not make it go away. There are many companies that are willing to offer help with payday loans.
Below are steps that you can take to get yourself out of payday loans:
- Contact your creditors
Get in contact with your lenders as soon as possible and notify them about your situation. The lenders should be able to recommend to you sources of free debt advice. They are obligated by law to suspend recovery of the debt as long as you are developing a repayment plan with a financial expert. The lenders are also expected to freeze interest rates and treat you with consideration, allowing you a reasonable amount of time to repay your loan.
If your lender shouldn’t put you under too much pressure even after you have explained your situation. Other things that your lender shouldn’t do include:
- Discussing your debt with your family or employers.
- Refusing to cooperate with the debt consolidation company acting on your behalf.
- Cancel the recurring payments
If you cannot afford important essentials like food, utility bills, and rent, it would be wise for you to consider canceling the recurring payments. Contact your bank and have them cancel the recurring payments; this means that the lender will not be able to take money from your account.
It’s important that you also inform your lenders about your move, a couple days before payment is due.
- Do not roll over your loan
Your lender will suggest that you roll your loan over for a month or so. Do not accept this as you will end up paying more fees and interest. Seek advice from debt advice services and let them help you choose a repayment plan that you can afford.
- Repay only what you can afford
The fact remains that you cannot be made to repay what you cannot afford. You need to have some money left over to take care of your basic needs.
- Stop the borrowing cycle and live a debtfree life
Taking out one loan after another will not fix your financial problems. The more you borrow, the deeper you slip into debt. To live a debt free life, you need to manage your outgoings to be within your income. This way there will be no need to take credit.
At some point, we all need to access extra money to take care of emergencies. Being in a payday loan debt can get ugly. That is why it’s always advisable to look at other affordable alternatives available for you to get the money.
When you try to borrow your way out of debt will only make the situation worse. There is a way out for you if you are stuck in debt cycle. All you need to do it find expert help to help you to manage your outstanding payday loans.