While it is very easy to get a payday loan nowadays, it is often too difficult to get out once you’re tied up in it. Since payday loans are short-term loans, the loaners are not given much ample time to spend the money and pay it back. Once you fail to pay your loan, which is usually less than a month due, the only solution you will be offered is to roll over the loan and pay additional fees. So here are some tips on how you can possibly get out of payday loan debt.
Get long-term installment loan
If you’re struggling to repay your current payday loan amounts, try to make smaller and more manageable repayments. You can do this by borrowing an installment loan and then pay off your payday loans right away. Most long-term installment loans have lowest personal loan rates compared to short-term loans since installment loans are basically designed as a long-term financial remedy. You will then be out of the payday loans’ trap and will just have one loan to deal with in which can give you ample time to prepare for payments. In addition, because you will pay off the loan over a longer period of time, there will be lower repayments every month.
Ask For an Extended Payment Plan (EPP)
You can also ask your payday lender if you can get on an extended payment plan (EPP), before closing on the last business day before your loan is due. This will break your loan up into smaller installment payments. If given more time to repay the loan, it will prevent you from paying additional fees or interest in the meantime. By doing this, you would usually be asked to sign a new loan agreement with the terms of your extended payment plan. However, make sure you read it carefully and understand the full terms before you agree so that you will not be entrapped by predatory lenders.
When you think you are drowning with the inescapable cycle of debt, you are not alone! Many are suffering due to this problem. But don’t fret! Debt or credit counseling programs are now made available in some universities, credit unions and other non-profit organizations to help you with money management. Just don’t be ashamed to seek professional advice. Those who seek help shall find help.