A payday loan, often known as a check or cash advance is a short term loan intended to provide sufficient funds to muddle through until the next payday. Although helpful and convenient in theory, payday loans come with a substantial levels of service fees. In fact a typical payday loan payment will cost about 25% or more of the loan amount in installments, it means that in financial terms the annual interest can be astronomical. Borrowers repeatedly find themselves knotted in the wicked circle of using much of their paycheck to pay the fees, only to have to borrow more money from payday lenders. There are ways to escape the cycle by eliminating the debt to payday loans:
Gather all documentation of your payday loans and total them. Once you are able to find an exact figure, now you can be on your way to finding the means to remove it from your budget.
Earn more money to pay debts yourself.
You can choose to fine additional work, start a profitable hobby as selling artworks, holding a weekly garage sale or ask family and friends to donate to your funds. If you combine all four, you will have even more financial power. Allocate all the extra income to pay your debts; start by paying smaller debts so you can accumulate sufficient funds to pay the larger debts. Continue reading How to get out of payday loan cycle: