A payday loan is rarely a good idea; however, you already know this or you wouldn’t be here. Companies offering payday loans do tempt us in by showing us how the loan can help us financially, in a wide array of domestic areas. Of course, there is a place for payday loans on the market, as they can help with unexpected expenses until you receive your pay. The trick is to pay them off quickly, so you don’t incur extra fees or interest as it’s when it’s prolonged that it can spiral out of control, leaving the borrower in a financial rut that’s hard to escape.
Here are some ways you could possibly pay off a payday loan quickly, allowing you to put the payday loan behind you. You should also check out the advice on paying back a payday loan alongside your rights when it comes to short term lending.
Don’t Accept Another Loan
A lot of payday lenders, if they see you struggling to pay, will offer to defer the loan or to give you another loan on top. This can seem attractive as they’ll make an offer that means you have some cash in your hand after you’ve paid the original loan off. Unfortunately, it’s rarely a solution as this larger loan will have a higher rate of interest. Unless you’re expecting a bonus from work, it’s likely that it will give you extra financial stress. Try to avoid this scenario if possible, as this is when spiralling occurs.
Shop Around Even if You Have Bad Credit
Don’t assume that just because you have bad credit you can’t get another loan that has a better interest rate. If you can find a guarantor there are many companies willing to offer a loan with much better rates than a payday loan. Payday loans are not suitable for paying off other debts as the interest is far too high. Shop around and look for credit cards and loans that have a much better interest rate for you.
Find Out What You’re Entitled To
If you’re struggling every month to make ends meet and find yourself relying on loans, credit cards or payday loans, you may be entitled to some help. You could be on a low income that means you’re entitled to tax credits or even help with your rent. Check out the department of work and pensions website to see if you qualify for extra help.
Claim What’s Rightfully Yours
If you’re looking for a payday loan you obviously have a job. You could be entitled to a tax rebate on all manner of things, such as uniform costs (even the washing of), tools and equipment and travel. Find out for free if you’re entitled to a tax rebate, it takes a little while but it could be the windfall you need to pay off your payday loan quickly.