Loan Till Payday: How to Pay Off Payday Loans

Loan Till Payday: How to Pay Off Payday Loans

You’ve been rolling over one payday loan after another, never sure when you’ll be able to get rid of the debt completely. The money you’re paying in interest charges every payday is taking a serious bite out of your funds, and you’re desperate to get out from under the shadow it has cast over your life.

Take heart, dear reader. You can pay off your payday loan, but it won’t be easy or quick. Quick and easy is how this mess got started after all, right? To dig yourself out, you’ll need a plan and the commitment to pay back the loan once and for all.

  1. The best option for repaying your payday loan is to pay it off with your next paycheck. This was the original idea, anyway. If you can find other ways to meet your financial obligations for the next few weeks, you may be able to get out of the payday loan cycle of debt. Put off another bill, ask if you can borrow money from a friend or relative until you’re back on your feet, do whatever it takes to get rid of your payday loan now.
  2. If you simply can’t pay off your payday loan in one fell swoop, make payment arrangements. Some states protect consumers with payday loan laws that allow customers to make payment arrangements if their loan has been rolled over a certain number of times. If your state doesn’t offer these protections, contact your lender and ask if you can make payment arrangements.
  3. If you can’t make payment arrangements with the lender, make them with yourself. That’s right. You can set up a plan to eliminate your payday loan in a few short weeks by rolling over only a portion of the original loan. Try reducing your payday loan by 25% for the next four pay cycles. You will still be hit with interest charges, but they’ll be smaller and smaller each pay period. In a month, you’ll be out from under the shadow and on your way to financial stability.

It’s easy to get sucked into the lure of easy money that payday lenders dangle in front of cash-strapped customers. Don’t blame yourself for getting stuck in a cycle of debt. Most payday loan customers end up rolling over their debt for months, some do so for years. Instead of beating yourself up over it, make a plan now to rid yourself of the debt.