The financial emergency that caused you to ask for a wage loan is over. Now you realize that you still have to ask for a loan to just satisfy yourself. The interest rates on payday loans are very high. Here are some tips that will help you find the solution.
1) Don’t panic.
Stop feeling bad about this “disaster”. This happened. You were not prepared. The best thing you can do now is to recover, and then make sure you are prepared for the next time.
2) Cancel automatic payment authorization (CPA).
When you apply for a payday loan, the borrower will schedule something, namely Automatic Payment Authorization, into your bank account. This is an automatic payment and can basically allow the borrower to collect the money from your account whenever you want. Usually, the money is taken out of your account on the due date, but if you can’t pay, you can use it to continue collecting money from your account.
The problem is that if you don’t have enough money in your bank to pay the loan, then each time you try to pay, the payment will decline and the bank will charge you. Because you have little money, the last thing you want is an additional cost, so you have to cancel the CPA. You have 2 options for cancellation. It is advisable to ask the company to cancel it for you (it may be that they tell you that you cannot, but it is your right to cancel it directly with the issuer of your card, so communicate it). The second option is to cancel it directly in the bank, but if you do, we encourage you to notify the company if you need to make other payments.
3) Make sure you get your check back or make sure there is money in the bank when the check is charged.
Allowing the checks to refuse will make a less than good situation much worse. Some companies want you to collect your check personally, and others will process it through your bank if you do not do it without fines.
4) Calculate how much you owe and how much you owe over time.
Create a table on a spreadsheet and name the capital (the amount you originally withdrawn), the fees or interest and the total at the end of each loan period.
Payday loans cost borrowers nearly 400% interest or more for loans to be fully repaid on the next payday of the borrower to avoid bad check on the check. He has to secure the loan.
This step is to motivate yourself and not to scare you. Look at it as if you’ve faced the facts and were honest about the situation.
5) Pay as much as you can, as soon as you can.
Even if you have set up a payment plan, try as much as you can to pay more than that. Any additional amount you can afford will reduce the loan period and total amount.
6) Draw up a payment plan.
Most companies, if not all, have a way to set up a pay plan after making several new loans a few times. Find out what the options are for the option and make sure you do what you need to determine it.
Calculate the time it will take to repay the loan with this plan and how much this payment plan will cost you during the time the loan lasts.
7) Start by “reducing your loans”.
This means that your loans are smaller each time.
8) Make a budget.
It can be simple. Start with an empty sheet of paper and write all your monthly income into one column. Write all your monthly expenses in a second column. Check out the receipts of last month and try to guess what you can if there are things you don’t know. Then look for things you can cut. The difference between your income and expenses is what you can use in your loan.
9) If you can, increase additional money.
If you can work overtime, do it now. Organize a garage sale, work occasionally in your free time, take advantage of your penny pot and do everything you can to think as long as it’s legal. Ask for an increase in work if you haven’t done it recently. Use all the extra money you can to repay the loan as soon as possible.
10) Reduce expenses.
Cook your own food at home and choose spaghetti instead of steak. Pack your lunch Turn off the lights and the computer when you are not using it. Cancel your cable TV. Compare the prices of insurance and phone plans. Make big purchases. Go shopping with a list. Again, use any additional money to pay off your loan.
11) Create a cash reserve.
First, pay off the loan, then separate at least a little money to make sure you never have to borrow again. Start by putting money into a savings account and paying another debt. Even $ 10 a week can be $ 520 a year, but try to achieve more than that if you can.
Use the new budget and save techniques you’ve learned when paying the loan.
If you still have a big debt, like a debt on your credit card, it’s time to pay it off. You can still separate some of your savings so you don’t have to fall into another debt if something unexpected happens.
Set a rescue goal Your initial savings objective may be equal to the amount you borrowed or equal to a certain amount of the salary bills. Set a specific time for this by how much you can save each month or payment period.
12) Pay yourself
if “you borrow” from your cash reserve, increase your savings rate until it at least re-integrates into its previous level.
13) Avoid emergencies.
Of course, not all emergencies can be predicted or avoided, but can you postpone a huge purchase until you save something extra? Can you keep your car maintenance routine up to date so you are less likely to pay for major repairs? A little pre-planning will help you make sure you never have to go through again.
- Put payday loan payments for everyone except the minimum payments on credit cards, in most cases. Your credit card balances will continue to grow if you only pay the minimum, but it is almost certain that the loan on loan has the highest interest rate on the debt you have. So do everything you can to pay it first.
- Many lawyers are efficient and have experience in negotiating with companies to obtain more favorable pay plans, and also because they are lawyers. Sometimes companies respect them more. Helping you and your advice to manage the process more effectively, briefly describe your problem and see if these issues are usually the lawyer’s responsibility and how much you pay for managing you (many can provide a fixed rate, note that unless you organize it in another way – you will usually have to pay even if the lawyer is not successful). Don’t hesitate to ask others before choosing one.
- Adjust the withholding of your W2 forms. Remember that this should only be used as a temporary measure. You must retain a certain amount of your salary during the year, or you will be fined in the tax season.
- Priority payments come for payday loans. Priority payments include things like rent or mortgage. When you make a payment plan with the borrower, it can only take into account the money you left after you pay these priority payments each month and can’t collect as much as you can’t pay (by law).
- The typical value for a payday loan is US $ 7.50 for every $ 50, such a US $ 500 loan costs US $ 75. Continue with a “new loan” For one year it costs US $ 1950 plus the head of The loan, which costs a total of US $ 2450 for a US $ 500 loan. You basically pay 390% of the APR for using your own money. Look for other alternatives before you obtain or renew a payday loan.