Getting Out Of A Payday Loan

Stretchy Loans

When you have a lot of financial responsibilities, one of the easiest ways out is to seek credit. There is nothing wrong with getting a loan for as long as you are able to pay it on time. There are instances where your finances and credit get mismanaged. In that case, the person has a hard time paying back the loans. It gets more difficult, especially when you are paying a payday loan.

The interest rates are high and any delay in payment can make it more difficult for you to repay the whole loan. Getting out of a payday loan is never easy but there are definitely ways that you can use to improve your finances. It takes time and sacrifice on your part.

Let’s face it. The fact is that when you are having a hard time paying back the loan, it can actually drag you into a trap, especially when it comes to payday loans which are considered to be high cost loans. The good news is that there are different ways for you to repay your debt. These are some of the strategies that you can use in order to pay back your loan:

  • Pay off the loan using your savings
    For many people, using their savings to pay back a loan is not the best way to do it. After all, you don’t want to touch the money that you have been saving for a long time. But there are instances wherein when you weigh in the benefits and the cost of using your savings to pay off the loan, the benefits outweigh the costs.

Instead of you having to pay for expensive interest rates and other costs related to your inability to pay back the payday loan, it is much better that you use some of your money in your savings to pay back your loan. Then again, this will only apply for people who have savings. If you have some cash in your account, you can use some of this money in order to pay your loan and in that way you can focus on earning money and saving for the next time. Use that and once you are able to pay back your loan, you can focus on other important things like earning additional income and increasing your savings.

  • Ask for extended repayment
    If you are really having a hard time paying back your loans, one of the options that you might try to use is to talk to your lender and ask if there are options available. You may want to request your lender to extend the repayment. There are some lenders who might offer you an extended payment option as a form of relief.


You should prepare yourself that not all that lenders are flexible when it comes to the terms of the payday loans that they provide. If you ask them and they say yes, they allow you to have an extended repayment, you get to have more time to prepare for the cash that you need in order to pay back the loan.

In having an extended repayment plan, it does not mean that you’re able to eliminate all of your financial responsibilities. It just means that you have much more time to pay back the loan so you don’t have to worry about having to pay for a lot of charges.

  • Talk to a credit counselor
    When it comes to eliminating debt, every person faces different circumstances. There are instances wherein if you only have one payday loan and you have a stretchy source of income, it is much easier for you to repay back the loan. For people who are heavily indebted, it gets more challenging, especially since there are many things that you have to consider. One of the best ways is for you to seek the professional help of a credit counselor. You can actually look for a foundation.


These foundations aim to provide information and at the same time available options to help those who are struggling to get their financial freedom. If you feel like you don’t have any more option left, it is always in your best interest to ask for help from people who know the different strategies that you can use in order to get out of your payday loan.

  • Apply for another loan
    This option is not the most popular option, especially if you are already having troubles with your current loans. You should only get another loan if you only have to pay back one loan and it is much costlier for you to pay for the late fees instead of getting a new loan. If you come to a point where you have already a lot of loans that you need to pay back, the most logical thing to do is not to get another loan that you might end up having a hard time paying back again.
  • Find ways to earn extra cash
    People who have enough money or cash does not need a loan unless it is really needed. Again, the trouble in paying back your payday loan stem from the fact that you are struggling with your finances. If you want to really get out of payday loans, you need to look at the root causes of the problem. One of the ways for you to avoid having to apply for a payday loan is for you to strengthen your finances. You should not just rely on one income. There are definitely lots of ways for you to have better finances, good credit standing and more money in your bank account that you can use in cases of emergency.


Here are some tips to follow:

  • Do part-time jobs
    Working full-time does not necessarily mean that you can pay for all of your expenses. When the need arises, it is hard to just rely on one source of income. That is why there are a lot of people who venture in different kinds of jobs. Some may even have part-time jobs or even three jobs just to be able to save money and to have the funds that they need in cases when they needed the most. By having a spare income, you don’t have to worry about financing certain expenses because you know that you have at least some cash that you can use for contingency.
  • Cut down on expenses
    One of the most common problems that people face nowadays is that they tend to spend more than what they can actually afford. At first, this might appear as if it is not going to cause any long-term problems. But come to think of it, if you are having a lot of expenses that are not necessary or you have luxuries that you cannot afford, the tendency is for you to find ways to finance these expenses.
    Once you go beyond the limits of your income, you resort to other means like for instance applying for loans until such a time that you are already in a debt trap. Whether you want to get rid of your payday loan or you simply want to manage your finances, it is very crucial that you know how to spend your money wisely.
    Check your expenses and make sure that you only buy the things that you really need. There’s nothing wrong and spending on items that are luxurious and can give you happiness. What is wrong and when you tend overdo it and you know that you cannot afford it. Just sped for the things that you need.
    Work overtime.
  • Another way for you to increase your income is to actually work overtime. If you feel like there are so many words that you need to finish, you can actually work all the time which gives you the chance to have extra cash on your paycheck. But having the opportunity to work additional hours, you get paid more and this is a very easy method for you to augment your income and at the same time help in paying off your payday loan.
  • Do a garage sale
    When you are looking for ways to pay off a loan, you need to be creative and at the same time, resourceful. You can actually do a garage sale by putting out all of the things that the saying are no longer needed. Not only do you get the chance to clean your stuff and to clear out all of this unnecessary things, but you can also actually make money out of it. Although the amount that you can raise is not that big especially if you don’t have a lot of things to sell, it can actually give you at least some amount to pay off your existing payday loan.

Take the time checking for things, personal items, furniture, and other belongings that you want to get rid of. Once you have finally identified these things, you can make a list and start doing the garage sale. For all you know, you can actually raise a good amount of money especially if you have good items that people will want to buy.

  • Start a side business
    Another possible way is for you to start a side business. Know that it does not mean that you really have to find a big business because it also means that you will need to get another loan to capitalize your business. But if you are going to improve and have a look at the different prospects and ideas where you can spend your energy and make a business out of them, you can actually find that there are many businesses that require small capital.
    Things may get really challenging at the beginning, especially when you are doing your full-time work and don’t have enough time to manage your side business. But as you spend more effort and learn more about your business, you will notice that you will get additional income once you generate sales and profit.
    You may also ask your family and friends if they want to have business partnerships with you. In that way, you don’t have to raise the whole amount of capital. For some people, what they do is they make use of their knowledge or even their personal hobby into a business. This makes you enjoy what you like doing and at the same time generate extra cash to get out of your payday loan. Who knows your business might expand and become big in the future. If this happens, then your problem is solved.
  • Be frugal
    When you ask rich people, you often notice that many of them share the same personal habits when it comes to spending their money. You will see that many really rich people don’t even spend on the things that ordinary people want to buy. Being frugal when it comes to spending is the very first step for you to avoid incurring debt and will help you avoid having to get a loan.
    For example, you may want to use coupons and deals whenever you shop for grocery items and other personal stuff. Many people may say that these coupons do not have that much effect especially since the discount is not that big. But when you actually calculate the total cost over the long. As time passes by, you can see that the discount accumulates and you can actually get a good deal.
  • Make a budget
    This is very much related to the previous strategies and related to managing your finances. If you are frugal, one thing that you should know and you should do is to create a weekly or a monthly budget whichever is much easier and more convenient for you. The reason why you need to make a budget is for you to be able to track down your income versus your expenses.
    When you have a budget, you can see where you are spending your money and how much you are spending on a particular type of expense. By seeing your budget, you know if you are actually overspending on things that you think are not necessary. Even if let’s say that you have a payday loan and you have other laws that you need to pay back, it’s still very important that you have a budget.
    This will ensure that you will no longer repeat the same mistakes that you did in the previous time when you were in need of money and you had no choice but to avail a payday loan.
  • Use your vehicle
    With Uber and other car applications, you know how the chance to earn extra cash with your car. This is now becoming a very popular stream of income not just among male drivers but even among female drivers. The nice thing about using your car for Uber is that you get to choose your schedule.
    It means that if you feel like you want to drop off someone in a particular location you can just turn on the app and start driving. If you do this on a regular basis, you will notice that you can actually get a good amount of money. This is a very feasible and less stressful part-time job that you can do to help you escape the cycle of having to about paying back your payday loan.
  • Rent a room in your house
    Rent costs can be quite expensive nowadays. Imagine if you are renting a big flat and there are many rooms and unoccupied, it’s just a waste. So why don’t you rent out the other rooms to get additional cash? This is a very steady stream of income and you don’t have to worry as to whether you will get additional money since the tenant will really pay for the monthly rental. It’s just a matter of being careful and selective when it comes to tenant selection.
  • Consider Debt Consolidation
    Considering debt consolidation has its share of pros and cons. There have been numerous cases were in people experience successful results, there are some people who experienced problems.
    This is one of the reasons why you need to make sure that you know what you are getting into. Before you even finally decide that you want to consolidate your debts, you need to find a reliable company or organization that you can trust and you know can really help you and consolidate your debt into one simple debt for you to avoid paying hefty fees and other costs.


Benefits of Loan Consolidation

In consolidating your debts, you can enjoy the following:

First is that it gives you the opportunity to have knowledge about financial management. Debt consolidation is highly recommended for people who have several outstanding loans and sometimes it can be really difficult for you to manage your responsibilities. So if you consolidate your debt, it goes into one account and it’s easier for you to track.

Another benefit that you can get is that you are able to negotiate for lower monthly repayments. Of course, lenders are different when it comes to their repayment plans. However, there are cases where lenders are willing to lower down your monthly repayment in such a way that you are able to pay back your loan.

Good Finance Management Skills

At the end of the day, your goal should not just be focusing on getting out of a payday loan. Your goal is for you to get out of that payday cycle. Once you learn how to manage your finances well, it is easier for you to pay or finance for other expenses.
When you have good financial standing, it also means that you can improve your credit score. Having a better credit score enables you to have access to different loan options. This means that you don’t necessarily have to get a payday loan in the event that you are in need of money.