Payday loans are a type of short-term loan designed to help you make ends meet until your next paycheck. However, they come with high interest rates and unexpected fees, so it’s best to avoid them when possible. 

1. Wait it Out
One of the hardest parts about spending money wisely is making the distinction between wants and needs. You need to pay your bills, but you don’t need to buy a coffee each morning or spring for a new pair of shoes. If you can’t afford a non-essential purchase with your next paycheck, don’t take out a payday loan to buy it.

2. Borrow from Family or Friends
High interest rates are the most dangerous aspect of payday loans. If you borrow $100 and must repay $300, you’re already setting yourself back on your next paycheck. To avoid falling into this endless cycle, ask a friend or family member for a small loan for the things you absolutely need to buy.

3. Borrow from a Credit Union
Finding a loan with no interest is ideal, but a low-interest loan is a lot safer than a payday loan, which can have interest rates as high as 400% or more. Credit unions have some of the best interest rates, so check there first if you are looking for a small loan to help you get by.

4. Increase Your Income
If you’ve done everything you can to budget and cut back spending, but you’re still struggling to pay the bills and provide for basic needs, it may be time to find a better paying job or consider getting a part-time job on the side.

Escaping a Payday Loan

Mistakes happen. If you’ve already taken out a payday loan and are having trouble paying it back, it’s not too late to regain control of your money and get yourself out of debt. Progressive Debt Relief specializes in negotiating with a range of payday lenders to settle debt. We offer free consultations and don’t charge any upfront fees, so you don’t have to spend a fortune to figure out if our services will work for you. Contact us today at 1.866.867.1493 to schedule your free consultation.

Payday loans are small, short-term loans offered by payday specialists to help you bridge an occasional gap between pay checks. However, they are not meant as a solution for dealing with long-term financial difficulties. Though legislation often limits the amount of interest that lenders can charge consumers, it can still be as much as 400% for payday loans. Failure to pay the amount back promptly will result in extravagant extension fees and penalties, which may in turn require additional payday loans.

Because people often turn to payday loans when they don’t qualify for bank loans with less onerous terms, there is a real tendency for multiple loans to pile up. If the original loan isn’t paid back in time, the financial hole will only continue to grow. 

5 Signs You Might Have a Payday Loan Debt Problem

If any of the following pertain to you, it may be time to get help.

1. You are carrying more than one payday loan at the same time. This is especially worrisome if you are carrying loans with multiple lenders in different locations.

2. The shortfall that required you to take out a payday loan in the first place still exists. Did that payday loan solve your problem?

3. You’re anxious, depressed, or overwhelmed by your financial situation due to a payday loan. These types of feelings are common among people struggling with loan debt.

4. If you’re paying more toward interest each week than toward the principal loan amount, it’s a sure sign you are in financial trouble.

5. The only solution to your financial situation is taking on more payday loan debt because other options are no longer available to you. Sadly, you may be in the process of becoming a credit risk.

If this sounds like you, Progressive Debt Relief may be able to help. We specialize in payday loans and are familiar with the perils and pitfalls surrounding them. With no upfront fees required and sympathetic, experienced account managers at your service, getting out from under your payday loan debt load is possible. Contact us today at 1.866.867.1493 to get yourself back on the path to financial health with a free consultation.

Payday loans are designed with the customer’s convenience in mind. Whether accessed online or at a brick-and-mortar neighborhood shop, payday loans are easily-obtained, small loans intended to tide consumers over between pay checks. 

Some jurisdictions limit the cost of payday loans and interest rates, some do not. Either way, these loans are meant to be a short-term solution to financial stress as they always carry hefty interest rates and stiff payback penalties. Using payday loans regularly is not advised.

Payback Difficulties

Unfortunately, many people find themselves chronically struggling with weekly or monthly expenses, then turning to payday loans to bridge the gap. Interest adds up, extension penalties accrue, and what was supposed to be a temporary solution turns into a cycle of ever-increasing debt with crushing payback terms. Studies have shown that consumers struggling with debt can feel overwhelmed, depressed, and alone, which can make it extremely difficult to implement an effective strategy for recovery.

How to Get Out of the Hole

There are steps you can take to break the cycle of payday loan debt. It likely can’t be done without some pain and sacrifice, but the sooner you start, the sooner you’ll be free to negotiate a less punitive plan for ongoing financial management. Most importantly, you’ll realize that you’re not alone and help is available.

Progressive Debt Relief offers a discreet and useful service to those who find themselves caught up in the payday loan debt spiral. Unlike some payday specialists, Progressive Debt Relief will work with you to settle debt without demanding fees upfront. We offer free consultations with their our financial experts to negotiate new terms and settle payday loan debt for good. Since Progressive Debt Relief has been specializing in payday loan debt for more than 13 years, we know the financial lending sector well.

If you’re caught up in what seems to be an escalating struggle to manage your payday loan debt, make a free consultation with one of Progressive Debt Relief’s experienced Account Managers without delay. We’re on your side, offering stellar customer service and extended business hours (weekdays 8:30am – 8:00pm EST), so don’t wait. Call today at (866) 867-1493.