Payday Cash Loans - How To Get Out Of Payday Loan Debt Now!

by : Helen Hecker

Today if you find yourself deep in payday cash loan debt you are just one in many thousands who are suffering right along with you. At the time you probably felt that you would be able to pay the loan back but then found that unexpected demands on your finances put you in the awful position of not being able to pay it back when it became due. The loan fees may have seemed relatively cheap at the time because of your dire need for the cash. In any event you may have gotten behind, but many others have also.

Many times people begin borrowing from other payday loan stores or companies to pay back their other payday loans or their online no-fax loans and it becomes a terrible cycle of borrowing that is hard to get out of. In spite of this there are a number of good ways to stop this cycle of bad credit. So carefully consider all the other possibilities before deciding on a payday cash loan if you need to borrow again.

When you need to borrow money make sure you shop around carefully. You need to compare all the offers you can find from both offline and online lenders, including payday cash advance loans and any other short term loans you can find. You want to look for the credit offer with the lowest APR (annual percentage rate) you can find.

Consider getting a small loan from your local credit union or reputable small loan company, getting an advance-on-pay from your employer if they're willing, or a small loan from family or friends if you are absolutely sure you can pay it back at a set time.

A cash advance on one of your credit cards also may be a possibility, but make sure to check the interest rate closely because it may have a much higher interest rate than the other sources of cash that you're considering. Find out all the terms and read the fine print before you make any moves in that direction.

If you own a reputable small business, a local organization or association may make a small business loan to you. And check out your bank for a reserve line. Some banks offer reserve lines as overdraft protection and this can often be in the thousands for personal or business accounts. I t may be worth opening up another account in another bank to get it. Consider keeping both accounts because of the history you've developed which can be important for future borrowing.

Make sure you closely compare both the annual percentage rate and the finance charge on all credit offers so you get the best and lowest cost before you commit to any type of loan including any quick cash payday loans. The finance charges may include loan fees, interest and a variety of credit costs.

Although you may be embarrassed or cringe at the thought, pick up the phone or visit your creditors and ask them to give you more time to pay your debt. They will be happy to hear from you and more often then not will appreciate the connection and try to work out something with you that is feasible. Make s sure to find out if they will be adding on any finance charges or give you a higher interest rate than you were paying.

It's absolutely necessary to pencil out a truly realistic budget - figure your monthly and daily expenses. Many people shun this advice but you must know exactly where your money leakage is. Try to avoid any luxury or unnecessary purchases - even on small daily items. It's best if you can keep a daily journal for you and each family member of all the big and especially little expenses. These costs can add up faster than lightning. Total up your daily expenses to see what they are costing you monthly. Buying coffee or lattes at coffee outlets are a big drain if you are spending $3 to $4 per cup. Just $3 a day is $90 a month! But there are many other drains as well.

When you're deep in payday loan debt it's hard to even think about building some savings - but even small deposits can help - to avoid borrowing for emergencies, unexpected expenses or any other unplanned items. After you turn yourself around and you can do it with due diligence then put the amount of the fee that would be paid on a $200 cash 'til payday loan in a savings account for six months so you have some extra cash available. You'll have peace of mind and a good defense against any financial emergencies that come up.

Further discussing overdraft protection as I mentioned - find out if you already have, or can get, any overdraft protection on your checking account. If you usually deplete the funds in your checking account or if you make an honest mistake in your checking account records, overdraft protection will help protect your good credit rating and standing with your bank.

So make sure you find out the exact terms of your bank's overdraft protection. Having this protection on any overages will in a sense be borrowing from a reserve account or line of credit. There is no penalty for doing this usually, just normal interest charges. You do want to pay it back just as soon as possible though and that would be a separate payment to your reserve line for the amount that was overdrafted.

If you need professional help working out a bad debt repayment plan with your creditors or developing a workable budget, then contact your local or regional non-profit consumer credit counseling service. There are many non-profit credit counseling groups or agencies in every state that offer good credit guidance. These services are usually available at very little or no cost to you. But be cautious about any consumer counseling services that charge a fee for their services. Get referrals or recommendations from your local CPA's, accountants or bookkeepers to find these agencies or check the business pages in your phone book.

Also, you can check with your credit union or housing authority for any no-cost or low-cost credit counseling programs they may have. Employers sometimes may be helpful but some people don't want to let their employer know they are having financial difficulties.
Another way that is commonly used is to contact a local small loan company or other lenders and consolidate the loans into one if the interest rate is workable. But only do this if you're sure you can afford the monthly payment. If you do go this route and still have difficulty paying on the loan you might have them rework the loan for a longer term for a lesser monthly payment. They're usually more than willing to do it.

If you decide you want to get a payday cash loan now or in the future, when you fill out the application borrow only as much as you know you can afford to pay with your next paycheck and still have enough left over to make it to your next payday.

By using some of these tips you may be able to avoid getting into more debt or be more informed about what you can do to start getting out of debt. These are just some of the many ways you can get out of payday cash loan debt. Yes there are still other ways to turn your bad debt situation around.