Payday Loans

Payday Loan Debt Repayment – Some Crucial Do’s

Short-term cash advances have been very popular despite the negative press these loan programs have received in recent years. It is quite unfortunate to see that thousands of consumers are even getting bankrupt because they fail to make the repayment (these consumers are usually the ones who take multiple cash advances over a short period of time). Therefore, it is very important for everybody who is considering taking “advantage” of these easy loans to be well aware of certain do’s and don’ts regarding payday loan debt repayment. Following is a brief rundown on it.

Always Have A Budget

It is not always necessarily true that just because you need to borrow some instant cash now, you were never following a budget. Sometimes, even those who always work on a specific budgeting plan have to face such situations probably because they are unable to foresee some of the unexpected expenses that are coming their way. This is the time to introduce some practical, meaningful, goal-oriented changes into your budget plan. The idea is not just to avoid such difficult financial situations in future but also to save enough to ensure timely repayment of the payday debt.

Monitor Your Debt

Monitoring your debt regularly is another crucial factor when it comes to payday loan debt repayment. Many people borrow loans and then forget about it. This is not how financial things work. Forgetting a debt does not eliminate it. It is just that you will have a relaxed life till the due date comes. Once you make a default on a payday loan, your financial life will turn into a nightmare. So, make sure you thoroughly understand how much you have to repay and how much time you have for the repayment.

Have A Repayment Plan

The repayment period is very short, usually just a couple of weeks, for payday loans. Therefore, you are recommended to have a foolproof repayment plan right before you borrow a cash advance. You must have a clear and honest understanding of how much you earn, what are your income resources, what are the compulsory expenses before the due date, and how you can save enough to be in time with the payday loan debt repayment. This well-planned approach is crucial to save your financial butt from the teeth of payday loan sharks.

Stop Using Credit Cards

Plan your financial activities on the basis of cash. Lock your credit cards at a safe place, at least for the time being. The use of credit cards often encourages people to make unnecessary purchases just on the basis of impulses, which can eventually make things more difficult for you.

Replace Your Payday Debt With A Low Rate Conventional Loan From Credit Unions

Many credit unions these days are offering small loans for short periods of time. The only problem is that they do not promise instant cash. You may have to wait 3-7 days before you get cash from them. So, depending upon the kind of financial emergency you are facing, you can choose to borrow a payday loan for the time being and then apply for the same amount of loan from a credit union. When you get the money from the credit union, you can make an early repayment for the payday loan. This way, you can save a substantial amount of money on interest and other charges. However, this option is viable only in a situation where your payday lender does not charge you any substantial penalty (unfortunately, many do) for prepayment. Therefore, read the fine prints thoroughly before you sign it; pay special attention to the clauses describing the provisions regarding payday loan debt repayment.

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Posted in Payday Loans, Repayment Strategies | 1 Comment »

One Response to “Payday Loan Debt Repayment – Some Crucial Do’s”

  1. Martin says:

    Pay day loan can prove a good step if the borrower follows some must steps. People taking short term cash advances; generally do not show any discipline regarding the repayment of such loans and the condition becomes horrible due to very rate of interest. If you are going to plan for taking a pay day loan always remember that the proper budgeting is the only key factor which can save you from being drown in the ocean of pay day debts. Budget plan is very important you should plan each and every expense of your house hold activities. You should plan your budget in such a way that you can do the repayment in time. You should have a very clear picture in your mind about all your debts because it will not remove the debts from your list of debts. Generally pay day loans come with a very short repayment period if you do not find yourself in a position to repay the loan in the definite time , you can try to opt some other options like debt consolidation etc. The best thing is that if you can get some cheap loan from any other source, just go and get it.

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