Many borrowers use payday loans to pay for unexpected expenditures, medical crises, automobile repairs, etc. Whatever reason you took out a payday loan, you must repay it by the end of the month or by your next pay period. You may, however, be unable to return your payday loans on schedule at times. Check out the advice below for paying off your payday loans on a plan if you find yourself in this situation.
1. Speak with your payday loan provider.
It is preferable to speak with your payday lender and explain why you cannot return your debts on time. If your lender offers a hardship program, they will extend the time you have to repay your loan and lower the amount you have to pay.
2. Set up a payment plan for a longer period.
Before the loan is due, ask your payday lender for an extended payment plan, which will break down your payday loan into smaller installment payments. You will have more time to repay your debt with a comprehensive payment plan, and you will not have to pay any additional interest or fees in the interim. You must sign a new loan agreement that includes the details of your extended payment plan.
3. Pay Your Loan With Your Credit Card
Paying your payday loan with a credit card is an excellent idea because it allows you to break down the loan amount into smaller, more manageable payments. If you have the option on your credit card, you could seek a cash advance to pay back your payday loan.
4. Payday Loan Consolidation
You can consolidate your payday loans with a personal loan. A personal loan will make it easier to keep track of your payments. A personal loan can be obtained in a variety of ways, including:
Make an application for a personal loan at your credit union or bank.
You can borrow the money from a family or a friend if you agree to repay it within a certain time limit.
5. Look into credit unions for small loans.
Credit unions provide low-cost, short-term loans. These loans will assist you in repaying your existing payday loan in a manageable manner. To qualify for these loans, you must be a credit union member for at least a month.
6. Seek Payday Loan Debt Help
If you’re having trouble repaying your payday loans on time, credit counseling and payday loan debt aid may be able to help. The debt counseling team will thoroughly examine your financial circumstances and provide a payment plan to help you pay off your obligations.