High-interest rates, short payback period, low amount of advances… these are the essentials that characterize payday loans.
Despite the high risk inherent in this type of debt, many still find themselves resorting to this debt. So, what happens when you get stuck in this cycle of debt?
Is there a way out of this financial rut?
Is there a way to get rid of payday loan debt?
Dive into this article to find out how possible this is.
Explore refinancing options
The only way out of this financial mess you have found yourself in is to look for a lower interest loan to pay off the outstanding debt. One of the refinancing options available to you is a personal loan if you have a healthy credit score of at least 600.
These loans are repayable over a period of seven years maximum, so it offers an easy way out of the problems payday loan presents.
Consider a debt consolidation program
You can get rid of payday loan debt by seeking counsel with debt consolidation attorneys who have expertise in helping people improve the repayment terms of their payday loans.
Such attorneys can help you reduce the interest rate, negotiate a favorable payment plan, cancel the late fees on your debt and so and so forth.
Negotiate convenient payment plans
This is another option that can help you if you are proactive about it. Once you realize you will have difficulty in making up payments on the due date, you should notify the lender about your precarious situation and pray for a relaxed repayment term.
Bootstrap from family and friends
In order to meet up with such debt settlement, you can risk asking your friends, families, and close colleagues for financial assistance so you can get rid of the looming danger posed by the payday debt.
Take on side gigs
Do you have a skill that can fend money for you? Well, if you envisage difficulty in meeting your payday debt repayment then you should set out to look for clients who will be willing to pay for your service. And if you do not have a skill, you can sign up for odd jobs to gather funds.
File for bankruptcy
I usually do not recommend this option but if all looks gloomy, and you have exhausted all possibilities then you can perhaps give this option a shot.
Bonus: Do not consider running away
If you think the passage of time will make your debt go away, you are in the wrong. The options available for you have been listed in this article, it’s up to you to choose the one you find feasible.