Payday loans are short-term loans that you are obligated to pay on your next payday. For someone who is behind with his bills, it is very easy to be drawn into a trap of feeling the need of a payday after payday, one payday after another, just to make ends meet. However, these loans carry very high interest rates, and a borrower often ends up paying a lot while stuck in the cycle of payday loans. Getting out of this trap is not easy, but it can be possible with some effort.
Instructions
1. Get a grasp of your situation. If you are somewhat behind your bills and find yourself in a payday loan trap, it is very important to get caught up as soon as possible in order to avoid needing payday's. Many people settle for these types of loans to get out of a financial turmoil, and have problems getting out of it. Sometimes the cycle of payday loans ends up with the borrower unable to pay the loan off at the agreed due date. This also mostly ends up with the borrower going to default on the payment, and might hurt one's credit score.
2. Get a second job or source of income if you need more money. Payday users or borrowers usually have the problem of not having enough funds to stop the payday loan cycle. Doing odd jobs or getting a second source of income for a few weeks will help the user both pay his/her loans and the bills at the same time.
3. Talk to those whom you owe money from, and ask for an extension. If you are taking out a loan to pay a rent or bills, share your situation with your landlord. Your landlord may understand your situation and give you an extension given to help you settle your payday's first. You can then settle your rent afterwards. And same goes with your bills. You can also try to talk to your electricity supplier if you can pay through installments just to get by.
4. Instead of taking out a payday, try to borrow from a friend or family first. For one, these types of loans have high interest rates. A family member or friend won't require you to pay high interest or even any interest at all. Doing such will help you pay off your debts and get you completely out of the cycle.
5. Give your payday lender a call and let them know that you want to end the never ending cycle with your payday loans. These lenders are people just like you, with situations just like yours as well, and they very well can relate to it. They may be able to extend the due date for you, so you can pay some of your other bills, and pay your loans on the next following due dates instead to help you ease the troubles and get yourself out of the payday loan cycle.
