19 Sep 3 Ways To Quickly Payoff Your Payday Loans
3 Ways To Quickly Payoff Your Payday Loans
We all want to get out of debt. Here are a few simple tips to help speed up the process.
We all have had a financial emergency at one time or another. In those moments, we don’t always have a lot of options available. When an unexpected bill or medical expense pops up, we tend to go with what is quick and easy.
Loans (like other products) that offer us a great deal of convenience are not typically the cheapest products. They don’t have to be. You have an urgent need and they are willing to lend with often times even if you have bad credit. Don’t lose hope, there are still several ways to better manage your payday loans.
1. Refinance the Loan
This should probably be your first step to managing the situation. Especially if the effective amount of interest you are paying is rate and not fee based. The longer you remain in a high interest rate loan the worse off you are.
Some payday loans don’t necessarily come with interest, instead they come with fees. It’s still a good idea to refinance these considering 4 out of 5 borrowers “rollover” their loans with more fees attached. Be conservative and set yourself for success.
2. Make Bi-Weekly Payments
This won’t necessarily apply to every type of loan. However, if you do find yourself in a high interest loan with a longer term this will definitely help. Payday loans with a short term of two weeks to maybe thirty days won’t apply to this bit of advice.
Making a bi-monthly payment or really any increase in payment frequency will decrease the interest cost of the loan. More payments mean the balance the interest is accruing on is less and less. On a yearly basis, it’s like applying a full extra payment. Over time but espeically if you took out a long term to keep your payment low – this method can end up shaving off months of payments.
3. Find Some Extra Money
The reason we have to take out loans in the first place, is because we don’t have the money. Finding some additional cash may not only help with the current emergency, but also prevent future ones.
It is easier than ever to make some extra cash, especially with the internet. My wife is constantly selling our kid’s toys that they no longer play with on various facebook groups and networks. Last year we even managed to fund all of our Christmas gifts by simply reselling old ones.
Another fast way to generate some cash is a part time job, like Uber. Uber allows you to work around your busy schedule while still generating some extra cash. Pro tip: It may not be a bad idea to split the extra cash, some towards the loan and some towards your savings.
While everyone’s financial situation and options available will vary, the tips above should offer some guidance regardless of your financial emergency. Our hope is that these tips will help you get back on track when sometimes life makes us take a detour.
If you or someone you know is struggling with a cycle of debt, contact us and we may be able to help.