Got into a ‘payday loan trap’? Taking out one loan after another? Rollovers, extensions, growing interest and penalty fees…. Sounds like a nightmare. But it’s a reality for those who borrowed bad credit Payday Loans online and didn’t manage to repay the money on time.
We can help you break this debt cycle and get out of Payday Loans with the least effort.
1.Debt Consolidation Loans
According to statistics from the Consumer Financial Protection Bureau (CFPB) and Pew Research the average annual percentage interest rate is 396%, with the average borrower spending $520 in interest and additional fees alone to borrow $375.
Debt Consolidation loans will help you combine your payday loans into one payment plan with a lower interest rate and more convenient terms. Consult a credit counselor before choosing a consolidation program for better results.
2.Payday Loan extended payment plans
Lenders don’t aim at your debt, they also want to get their money back. That’s why you should discuss loan default problem with your direct lending company. They would gladly offer you some options to pay the money back in a more affordable way. For example, you can get a repayment plan. Though it may have higher interest, it will provide you with more time to plan the budget or make more money to pay the loan back.
Read also: Payday Loans from direct lenders
3.Personal loans for bad credit – not Payday Loans
Personal Loans differ from Payday Loans by higher amounts, longer terms and lower interest. So it may be worth applying for one to get enough money to pay back a Payday cash advance and some money left to pay the bills.
4.Consider Bank or Credit Union Loans
Federal or local credit unions and banks may offer Payday Alternative Loans at more affordable conditions that will let you get out of Payday Loan debt. But you need to be a credit union member or have a bank account, and pay an application fee.
5.Work overtime or make some extra money by selling stuff online
Look for some gigs online, or take some unnecessary things to a pawn shop. You can always make extra $100 or 300 dollars loan to repay the debt.
Still wonder how to get out of payday loans? Follow any of the advice above, or apply for online loan to any of our reliable direct lenders to get help from them. Don’t take out another Payday Loan until you’ve paid back this one. Be more careful with your expenses, and plan the budget so that you didn’t have to use any loans.
February 9, 2023
Fil Chopp
Fil Chopp is a CEO and chief editor at 123moneyloans.com. He has worked in the financial sector (loans and insurance) for over 16 years and has a wealth of experience to share. He is a regular contributor to financial magazines and blogs, and is always happy to help people learn more about their finances.