6 Popular Ways to Pay off Payday Loans

If you’re not careful, payday loans can quickly take over your life. If you have outstanding debts, it’s critical to get creative looking for ways to pay off payday loans. Taking action on your debts will prevent you from losing even more money to interest and late fees.

While quick payday loans offer you immediate monetary relief, it’s a good idea to repay them as quickly as possible. Be honest about your current circumstances. The transparency will help you create a realistic plan that doesn’t drastically alter your lifestyle.

Make a budget to get a clear idea of how much money you have coming in and out each month. Organize your debts, starting with the highest interest rate first to prioritize how you’ll pay them off. Making a clear plan will make it easier to stick to a budget and your commitment to be debt-free.

After you create a plan, try these six popular ways to pay off payday loans:

1. Debt Consolidation

Debt consolidation is a common method people use to resolve outstanding payday loans. Consolidating your debt can be a smart technique to avoid paying additional interest and late fees. You can come up with a realistic plan of action with the consolidating company instead of playing catch up with your existing lender.

Debt consolidation is a worthwhile option if you have multiple debts that are eating up your paychecks and interfering with your ability to save. Switching to a single monthly payment is among the most effective ways to pay off payday loans and make your debts easier to manage.

2. Personal Loan

Another debt tool you can use to pay off a payday loan is a personal loan. Depending on your bank’s terms, you may be able to transfer your outstanding debts into a single personal loan, similar to debt consolidation. The difference is you’ll generally get better interest rates when you choose the personal loan option. Personal loans are also usually unsecured, which means you don’t need to provide collateral to get approved.

If you do have some cash or other assets, you can go for a secured personal loan which can get you even lower interest rates. If you’re struggling with a payday loan, it’s worth seeing the rates available on personal loans at your local banks and credit unions.

3. Bankruptcy

Bankruptcy is a scary word, but it’s a tool people often use to get their debts under control. Filing for bankruptcy will severely harm your credit, but it will give you the release of no longer having to make crippling payments.

With bankruptcy, you have the option of using some of your assets to pay back your creditors, or you can make a payment plan over three to five years. It’s worth speaking with a debt counselor before taking an important step like filing for bankruptcy.

4. Part-Time Job

Finding ways to earn more money can speed up your ability to become debt-free. Increasing your income allows you to make bigger payments and avoid having your progress set back by late fees and interest. Consider looking for a part-time job to help you raise your income.

If you have a car, you can use it as an asset by getting some type of delivery job. Even something as simple as babysitting or dog walking can put more money in your pocket and help you settle your debts.

5. Eliminate Expenses

If you’re struggling to find ways to pay off payday loans, look for expenses you can eliminate from your life. Netflix, Spotify, and other entertainment subscriptions should be the first to go to help you pay down your debt. It’s worth following a budget, so you have a clear idea of how much money you have left over after paying all your essential bills. Don’t fall into the trap of thinking luxuries that you enjoy are necessary. Becoming debt-free will require some sacrifices, but it’s worth it in the long run.

6. Eat at Home

Eating out is one of the most common reasons people struggle to save money. While it’s much easier to eat out rather than cook, the price is significantly higher. Eating 2 meals out per day will cost you at least $10-$20 compared to $5 or less by preparing a meal at your house. While trying to get debt-free, it’s a good idea to use coupons to find savings at the grocery store.

You can easily get a week’s worth of food for a single person for around $40 if you’re committed to saying money. Items like rotisserie chickens, bread, salad, chicken breasts, rice, and beans are cost-effective and will last you a long time.