Payday Loans Debt Consolidation

Four Concrete Strategies To Get Out Of Payday Loan Debt

Considering the unfair and unreasonable practices that most payday lenders are involved in, it does not seem to be an easy task to get out of payday loan debt. The main targets for these loans are those consumers who have limited hand-to-mouth monthly income. Because of the high interest rates of as much as 400% or even more and the provisions like high penalty and automatic renewal of loans on non-payment of the debt on the set due date, the outstanding dues on these loans grow very fast. The borrowers thus often get trapped into a complex web of debts. But, despite all these facts, you are strongly recommended not to assume that you are trapped in a completely hopeless situation. If you are willing to discipline yourself financially and have the determination to achieve a debt-free life, the following concrete strategies will definitely help you do that.

Start Budgeting

If you seriously want to get out of payday loan debt, the first thing you have to do is to implement some effective money management strategies. When you start budgeting, it will become much easier for you to control and manage your debt problems. Budgeting is all about having control over your money rather than allowing money to control you. You need to implement ideas on how you can spend less and save more. You need to inculcate some habits. Work out your plan on a simple piece of paper, on a spreadsheet on your computer or by using a budgeting software tool. The idea is to get a clear picture on where your money is coming from and where it is going. Identify the holes where your hard-earned money is leaking from and then close all those holes. Always remember, in order to get additional money, you do not always need to earn more; you can obtain a lot of extra cash by spending less. Here’s . And, here’s .

Stop Piling More Debts

While you are working out your strategies on how to get out of payday loan debt, you must not continue racking up more debt. It is obviously common sense, but this point is being emphasized here because common sense is something very uncommon. You can find many people who obtain new loans to get rid of their previous debts. This is the most stupid way to deal with a debt problem, especially if you are obtaining a second payday loan to pay off existing outstanding dues on payday cash advances. If you do this, you will only push yourself into a more serious debt trap and you may eventually even end up getting bankrupt. So, get yourself financially disciplined (by following the first step) and stop piling more debt. In fact, it will be better if you start using cash and stop using your credit cards. Most of the times, people end up piling more debts just on temptation. The best way to fight against these risky temptations is to avoid using all those tools and resources that can encourage you to acquire additional debts. Apply a strict cash regimen. When you stick to just cash transactions and work on an effective budget plan, this combination will accelerate the process of getting out of your debt problems, as you will in that case be accumulating more extra fund to pay off your debts more quickly.

Avoid Impulse Shopping

The key to successfully get out of payday loan debt is how much control you have on your money. If you are purchasing things on an impulse, and not because you really need those things, you are causing some serious dent on your already damaged finances. Though it is easy to suggest someone to avoid impulses, you may find it practically very difficult to do. To succeed in your efforts, you again need a plan. For example, here are the five things you can do to .

Be Aware Of Payday Loan Laws In Your State

Every state has certain laws to protect the rights and interests of consumers against this type of predatory lending programs. Awareness of those laws can open some new doors for you to get out of payday loan debt. For example, many states like Indiana have strictly prohibited the automatic renewal of loan if the borrower fails to make the repayment in time. Such practices from payday lenders are illegal in these states. If you notice any such violation of laws, you can file a complaint against the lender at the Federal Trade Commission. You can for comprehensive information on in different states. The more you are aware of the laws, the better you will be able to plan your course of action to deal with your debt problems.

Overall, the key to get out of payday loan debt is to be well aware of your legal rights and what the state laws have to say about it. When you combine this awareness with strong financial discipline and a strong dose of self-determination, and then take your actions accordingly, there is no reason why you should fail.


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Posted in Managing Payday Debt, Payday Loans, Payday Loans Debt Consolidation, Repayment Strategies | 3 Comments »

3 Responses to “Four Concrete Strategies To Get Out Of Payday Loan Debt”

  1. [...] that you have found that extra cash, the next step is to plan your strategies to pay off payday loans to achieve a debt free [...]

  2. robert says:

    When anybody applies for a payday loan, he/she generally don’t think about the complexities in the repayment of debt or the circumstances pushed the individual into the ocean of debt. Getting out of this ocean is not very difficult if you go through this article and follow the foot steps shown in it. The basic fundamental step to avoid any financial crisis is always following a budget plan, not only in a formal manner, just making a plan at the start of a month and then forgets about it. The needs of every family member should be included in the budget and all other expenses have to be mentioned in the budget and you will be able to find the deficit of your income and expenses. Now one can try to increase the income and save the money by cutting down some extra flash on entertainment, dining out, watching movies etc. Trying to get another loan to pay off the existing loan is not a good idea and it will be more complicated to repay all the debts collectively. Every one should be aware of the laws of his/her state about the payday loan so that they can not be misguided by the creditors.

  3. [...] practices that most payday lenders are involved in, it does not seem to be an easy task to get out of payday loan debt. The main targets for these loans are those consumers who have limited hand-to-mouth monthly [...]

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