1. Automate repayment – Payday loans are granted to people who have a steady source of income. In other words, your application will only be approved if you have a regular income or salary each month. It would be much easier if you could simply pay off the debt with the money you receive the following month. However, some people are not able to do that. They would spend the money elsewhere and have little money left for repayment. So go to the bank and automate the payment of the debt. The money should reach your creditor as soon as it arrives at your bank. You can spend the remaining balance in your account. In fact, most creditors have the payment automation forms with them. Ask them and they can provide them to you. If you take out a loan with us, you have the option to do the repayment in automatic mode. On payday, the money will be debited directly from your account and credited to ours automatically. You can forget to pay, so this is the safest way to avoid delinquency. Some people have cash but forget to pay. That’s why automating payments is a good way to avoid late penalties. In fact, you should automate payments on all your credit cards.
2. Cut your spending – You’re in debt, so the last thing you want to do is spend a lot. Make that the central goal of your life, at least for now. So go ahead. Cut spending whenever you can. Make a plan. Go back to the drawing board and see where you can cut expenses. Get rid of your expensive cell phone plan or your cable TV subscription. Buy something simpler. Try to reduce your food budget. There’s always something you can do without. This way, you’ll be able to get rid of debt more easily and you’ll have money left in your account that you can save each month. This will help you in the long run.
One of the best ways to stop spending on things you don’t need is to stop watching TV or cut back greatly. They show all of us kids great commercials and force us to buy. Just don’t watch them and stop buying little or no useful products. And, of course, save money.
2. Increase your income – Have you ever thought about trying to earn more money? This way, you will certainly be able to pay off your debts quickly. A second source of income could also prevent you from borrowing money in the future. Contrary to what many believe, earning a second income is not really that difficult. For example, you can sell all your unwanted items on eBay. You’ll quickly earn money to pay off your debts, plus you can declutter your home. You can also create a blog to earn some money in the long run. You can also find weekend jobs. There are many ways to earn extra money. You just have to try it.
3. Make small payments – The term of a payday loan is short: you have to pay back the money after you get the next month’s paycheck. But if you can earn some extra money in the meantime, you might consider paying off some of your debt with that money. This will help you control your burden and make it much easier to pay it off later. Plus, if you keep paying it off, you won’t waste the extra money you earn. Check with your payday lender to see if you are allowed to make small payments in the middle of the month.
4. Is there a prepayment penalty? – Sometimes there is a prepayment penalty if the debt is paid off early. Ask the creditor when you apply for the loan. If you have already taken out a loan with a penalty, calculate how much it is in monetary terms compared to the interest you will save if you pay it off early. This will help you determine if you need to pay off your debt early.
6. one of the advantages of a payday loan is that you can get the money you need very quickly. It can be transferred to your bank account within 24-48 hours. This is perfect in case of an emergency. But if you have the money, you also have some time to spare. So you can try other options. For example, you can take out a loan against your life insurance and other savings and policies to pay off your current debt. Yes, you’ll get less money later, but that’s a small price to pay for running out of money at this point in life. Interest rates on life insurance are lower than commercial rates, so you’ll save more than you spend.
7. Borrow from your 401(k) – Similar to the previous point, you can borrow up to 50% if you participate in a 401(k) retirement plan at work. So see how much money you have in your account and take some out to pay off your debt. Don’t worry. Payday loans are microloans anyway, so you don’t have to take out too much money.
8. Renegotiate the terms – If for some reason you see that you can’t afford the loan at the end of the month, try to renegotiate the terms with the creditor. Convince the credit reporting agency that you are still serious about repayment, and there will be many who will go out of their way to help you. They may be able to reduce your fees or interest rates. You never know unless you ask. After all, the lender wants to get their money back too. Our lenders will cooperate with you if you tell them ahead of time that you will pay back your loan but need some time. Our lenders will work with you to find a plan that works best for both you and the lender. However, please let them know at least one week in advance.
10. Get eligible tax deductions – Are you getting all the lucrative and eligible tax deductions? It may surprise you that many people don’t understand because they don’t know the details. Get professional tax help when you need it. This will help your long-term financial health. You will have extra money that you can use to pay off debt. You may not even need the loan at all.
Angela Albert is an executive at Loan Tube UK, a leading provider of online payday loans. Based and providing payday loans and throughout the UK, Cash One makes the entire process as simple as possible. [http://www.loantube.uk/payday-loans-for-bad-credit.html]