How to Ensure Paying Off Payday Loan with Unsteady Income
We usually make commitments that we could barely fulfill. Payday loans might be one of those commitments for many of us. At the time of emergency we end up taking payday loan without thinking or making any plans to pay it back. One mistake that is even bigger than no source of paying it back is not planning to pay it back at all.
The longer the payday loan goes after missing its date; the more the interest rate will be. Here is some solid payday loans information, however even with unsteady income and temporary paychecks there are some ways from which the lender can get rid of the payday loan debt; Before we explore those options; let’s learn about some basic rules that payday companies follow after the missed date:
- After a date is missed, the payday companies can rollover the outstanding loan but not more than twice.
- A payday company is there to guide the debtors, so in case the borrower is struggling to pay back the loan, the lenders are responsible to provide them with contacts of debt advisors.
- The lenders are not allowed to deduct from the debtors account more than twice, unless it has been agreed upon.
- The debtors will issue a warning for other financial promotions.
1. Do not take another loan:
There are other options to deal with loan debt but never ever make the grave mistake of paying off one loan with another. It would be like a hole, the more you dig, the more in depth you’ll go. It starts a never –ending borrowing cycle and by the end of it, you’ll be even more in debt than you started out with.
2. Be calm and collected:
It might not help you directly but many people tend to get panicked when they see a bill that they cannot handle. And panic leads people to do many obtuse things. They key to paying the loan back is quick planning and some smart thinking. A panicked mind can do neither.
3. A friend:
A friend in need is a friend indeed. There’s always someone in our life who is patient and understanding, could be a relative or a friend. Borrowing with them to pay off the loan is one of the easiest and best ways. First, they won’t ask for interest. And they would not set a fixed time period for you to pay back. So as soon as you get extra cash. Return it back.
4. Clip some of your expenses:
It will only be for a short period of time, but you’ll need to trim some of your expenses. Not the necessary essentials of life but cut-back on the luxurious items. Track your costs and see where you could have saved money, for example catching the town bus for a month could save you money that gas takes. Or buying a $4 drink is cheaper than making a cup of coffee daily. Save all this money, put it in piggy bank (kids style) and because payday loans are usually less in amount, you’ll be able to pay it back. You’d actually be surprised how little things can save so much money.
5. Start an emergency fund:
Even if you do not own any debt right now, it’s always smart to have an emergency fund, one that you do not touch at any cost. No matter how direly you need it. If it’s not an emergency then that fund is not to be touched. Take out a certain amount from your salary every month. And if you already have one of those, then we can assure you that this is an emergency and you can pay it off with your emergency fund.
6. Another job:
Things will be difficult if you are already taking two jobs, but working one more temporary job can solve your debt problems. Just one paycheck could help you pay off your payday loan debt. You can always leave the job once you got rid of the debt. Or maybe you’ll end up loving this job better than others.
Paying off payday loan is not as difficult as other loans are, because payday loans are usually very less in amount and could be paid off within weeks or a month at most.