Payday Loan Cycle: 3 Tips to Break Your Debt ShacklesInk Well Mag July 13, 2016 0 COMMENTS
You apply for a payday loan to cover an emergency expense. You plan to repay it on time, but then the money you’re expecting didn’t come. You have your loan rolled over to extend its term. However, something came up the following week, rendering your finances insufficient to finish your payday loan. So you ask for another rollover; the cycle continues until you realized that your debt has increased severalfold.
This scenario is not uncommon, especially in Utah. Many apply for cash loans in Kearns, confidently believing they can repay everything but keep on having setbacks. As a result, they end up shouldering a mountain of debt that is almost impossible to be repaid in two weeks.
Fortunately, there are ways to break your payday loan cycle. With discipline and sound decision-making, you can do the following and get positive results:
Make Partial Payments
If you can’t pay in full, then do it in installments. A partial payment strategy can make your repayment duties more bearable. If you have extra cash, use it to reduce your payday loan balance, including fees, instead of spending it elsewhere. Slowly but surely, your total debt would be smaller come the due date.
Cut Unnecessary Expenses
When you’re trying your payday loan cycle, you should, by all means, spend your money wisely. Only your basic needs should be on your budget and stop spending on anything you can live without until you get your loan fully repaid.
More often than not, prioritizing the essentials can keep you from blowing a considerable amount of money. You might have to live from paycheck to paycheck for a while, but do it if that’s what it takes to break this costly debt cycle.
Work Something Out
Lastly, it wouldn’t hurt to talk to your lender about other options to get your loan repaid faster. You might ask for a longer term or a lower fee just to make your payday loan easier to manage.
If your lender offers new specials that weren’t available when you applied, ask if you could qualify. At this point, any possible method to reduce your debt is worth trying.
An unpaid payday loan could dig you a deep financial hole, but it’s nonetheless escapable. If you play your cards right, you could break free from your debt shackles sooner than later.