Avoid Payday Loan Debt

It’s better to avoid payday loan debt than to get sucked into a payday loan debt cycle. Many people believe there’s no way to avoid payday loan debt because there are no other options. Considering the high interest rates, constant loan renewal fees and short timeframes for you to repay payday lenders, avoiding payday loan debt is the better solution.

Avoid payday loan debt by using the following alternatives:

Borrow money from a relative or friend.

You should think about this because it’s not unusual to destroy a friendship or cut off family ties over money. However, if you promise to pay your friend or relative back, this could be an okay solution. Make sure you and the lender have a written agreement for legal purposes. This agreement should include the loan terms and the consequences of not repaying the debt.

Approach a credit union.

A credit union is a nonprofit-making money cooperative whose members can borrow from pooled deposits at low interest rates. A credit union may  want to lend you money based on your promise to repay and your character, rather than whether you have a bad credit history. It’s ideal to find one which services your career field, like the Navy Federal Credit union for military veterans or a teacher credit union for teachers.

Try your best to build up an emergency cash fund in your savings account.

This may be a struggle, but there are two ways to look at this. One is if you’d rather spend six months throwing away money on a debt that cost more than the original loan you took out. The other way is to spend the next six months arranging some way to save money for needed expenses.

Find part-time employment or ask for overtime for extra income.

It doesn’t hurt to have an extra source of income. Also, consider asking your employer for an advancement on your paycheck. If this request is fulfilled, you will see a lower paycheck in the future.

Build credit so you can borrow from mainstream lenders in small amounts.

You can build credit by getting a secured credit card.This is a card with a credit limit usually equal to the deposit you put with the financial institution. Don’t overcharge this credit card; pay only for what you can afford. Pay your secured credit card bill on time every month; one delayed payment can greatly impact your credit scores.

Find out if you can get overdraft protection for your checking account.

An overdraft protection will allow you to temporarily make purchases with a debit card even if there isn’t enough money in the account to cover them. An overdraft protection on your checking account can protect you from further credit problems. Find out the features of your bank’s overdraft protection plan like whether one is offered and service fees.

If you were unable to avoid payday loan debt due to the way payday loans work, there is still a way out. My Payday Loan Relief can help you. Call 1-888-958-1787 or fill out the form today for a Free Consultation.

 

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