A payday loan refers to a short-term loan that helps you fulfill your expenses before your salary arrives. It is also known as a cash advance, salary advance, or payday advance.
Tips for Getting Out of a Payday Loan Debt
Every year, more than 10 million Americans apply for a payday loan, and quite a few of them fall prey to the interest trap.
Look for Debt Consolidation Programs
Debt consolidation programs, also known as debt settlement programs, are meant to merge all of your payday loans into a single payment plan.
You should start off by listing down all of your loans, especially in order of the interest, you have to pay on them.
Pay Off High-Interest Loans First
They are concerned about getting their money back with interest, so they will have to heed your requests and offer you more flexibility.
Request for Extended Payment Plans
A personal loan can also be of different types, including credit card loans, home equity loans, lines of credit, or a loan designed to pay off or pay down a larger loan.
Opt for Non-Profit Credit Counseling
Credit counseling is a useful method to help you get your finances back on track, and also to help you break the cycle of debt.