Payday Loans Debt Consolidation

10 Ways On How To Get Payday Debt Relief – Part 1

First things first, this is not a step-by-step guide; it is a list of ideas and advice, which if you implement thoroughly can help you not only to get the much needed payday debt relief but also to achieve a completely debt-free life. I have interviewed several debt management experts and then have compiled this wonderful list. You are strongly recommended to go through the entire list and try those tips that you think can work best for you. And, if you find the list useful, please spread the word and share this piece of information with your friends, colleagues, family members, neighbors, or just anybody who you care. This way, you will actually be helping the community by showing them the way on how they can get rid of their debt problems and achieve financial freedom. Most importantly, feel free to add your tips, ideas, and advise also in the comments.

1. Use Cash

If you are looking for , it does not make any sense to acquire more debts. You must stop using your credit cards. Lock your credit cards at a safe place and then forget it. You must use cash for most of your purchases. This way, you will not end up spending more than what you have. The habit of using cash will help you achieve financial discipline, which will definitely make it easier for you to fight against your debt problems.

2. Never Spend More Than You Earn

Creating a tight yet practical monthly budget and sticking to the same is critical in your battle against debts. When you will combine your budget with your habit of using cash, it will give you guaranteed tremendous results. You just have to plan everything in a way that you must not end up spending more than what you earn. Again, this is common sense, but this point has still been emphasized here in bold because common sense is something very uncommon. People know these basics. Still they get into debt problems. The reason is obvious – they seldom implement their knowledge.

3. Face Your Liabilities

People who look out for payday debt relief often get so stressed that they end up ignoring their liabilities. For example, they stop responding to their creditors’ phone calls. But, just running away from your problems is not going to solve it. You have to face it. You must take stock of all your liabilities. Write down all your debts in a spreadsheet and update it on a monthly basis. Whenever you pay a part of your debt and update this spreadsheet, you will see a reduction in the grand total of all your debts. This can really be quite motivational for you – watching your debts reducing. When you literally see it happening, you will feel motivated to put more serious efforts toward faster debt repayment.

4. Create An Emergency Fund

Imagine, what will happen if you have to meet another financial emergency while you are still trying to get payday debt relief? You will tend to acquire more debts unless you have an emergency fund. So, while you are implementing strategies to pay off your debts faster, you must also consider building an emergency fund (no matter how small it is). It will make sure you do not get into further debt trap.

5. Negotiate A Repayment Plan With Your Creditor

When you owe a hefty amount of money to your creditor, you may not feel like facing them. But, as said earlier, avoiding them will not do any good. So, better, face them. Schedule an appointment with them. Bring all the documents with you in support of your claim while you discuss your financial problems with them and request them to accept an affordable repayment plan. At the same time, you must also demonstrate that you are well aware of your legal rights and the applicable in your state. This will definitely put your creditor on the back foot and they will show interest in finalizing an affordable debt repayment plan in line with the legal provisions. On the other hand, your ignorance can turn out to be a very costly affair for you.

Continued: 6.


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Posted in Managing Payday Debt, Payday Loans Debt Consolidation, Repayment Strategies | 6 Comments »

6 Responses to “10 Ways On How To Get Payday Debt Relief – Part 1”

  1. [...] the first part, we discussed 5 crucial steps on how to get out of payday loan debt. You can get faster results by [...]

  2. michael says:

    When we start thinking about to get rid off the debt, the right time is to start following the budget strictly. Budget should include every small or big expenses and the source of income. The first point is the most excellent, we should never depend upon the plastic money because it is very easy to go for shopping using credit cards but if you have only limited amount of cash in your wallet, you will not exceed beyond your limit. Make a list of things you need to buy. This list will explain you the limits of shopping and will see the difference. If you found yourself unable to repay the debt installments, just talk to your creditors and try to work on a plan of repayment which is suitable for both of you. If you can follow some strict rules of simple living, you will soon be able to live a debt free life without any fear of creditor’s calls and can enjoy the life.

  3. jack says:

    I want to know about debt restructuring?

  4. scott says:

    Debt restructuring is used when you will be not able to pay the amount on time. In this case debt restructuring will helps you. You simply have to work with the clients not creditors, they helps you by negotiating for best restructuring scenario. It may be possible that if you have not deposit the amount on time, the creditors may harass you. It will protect you from the creditors.

  5. abel says:

    Is it possible that my credit score affected by the debt consolidation?

  6. scott says:

    There are several restructuring options are available that effect the credit score. This is a general rule that if you settle your debt at less then hundred cents on $ it will definitely negative effect on your credit score. Some time it may asked that we do not paying off the debt, it is hit our credit score. So the answer is if you are engaged in any bankruptcy then it will show in R9 and debt settles in R7. R9 is a code which is used by the CRA (consumer reporting agencies) that resolved credit account which is charged off by the creditors. It is accounting term that is used by the creditors that means creditors transferred the account from the account that received book of bad debt ledger. R7 means if you an optional repayment of your debt. This valid for 3 years in credit bureau from your last date of payment by using R7 you can apply for secure debt.

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