Payday Loans

How to Pay off Your Payday Loan

A payday loan can be a tricky type of borrowing to deal with. It is different to many other types of borrowing because you have to repay it all in a lump sum. This means that whatever you borrow, plus the interest and any other borrowing costs have to be repaid all in one go. Therefore you have to make sure that you have a chunk of money to do so. If you do not manage to pay it off, then there will be extra charges and fees and the debt can very easily get out of hand. Therefore it is wise to make sure that you pay it off when it is due.

When you take out a payday loan, a direct debit is usually set up to pay off the balance when it is due. This is set up to be on the day that you are paid, so that there is a better chance that you will have the money available to pay it. It is worth making seeing whether it could be done the day after pay day or late in the day you are paid as you do not want to risk them claiming payment before you get paid because they will charge a fee for that.

It is important to be completely aware of how much you will need to repay. You need to make sure that when you are paid there will be enough to pay it. You should know or be able to find out how much you will be paid and so that will help. However, you also need to be aware of what other payments will be going out, perhaps on that day or before to make sure there is enough. For example, if you pay out so much that you are overdrawn when you get paid, your pay will automatically pay off that overdraft and there may not be enough left to pay off the payday loan. Therefore you need to plan and budget carefully.

It can be wise to look back over a few months bank statements so that you are aware of what money goes out and when. Think about all of the bills that you have to pay and when you pay for them. Consider whether there will be enough money to be able to do this. If you think that there might not be enough to cover it then you need to act and do something about it so that you can make sure that you do have enough money to cover it. As well as this you need to think about how you will manage after you have paid the loan and whether you will have enough money to keep you going until you are next paid.

If you think that you will have difficulties then it is important to act and do something about it. There are things that you will be able to do in order to help yourself. Firstly look at everything that you normally pay for and see whether they are really necessary. Are there any things that you can go without, just until you get this loans paid off. It might be that you could cut down on luxury items, perhaps. It could be worth speaking to those companies that you make regular payments to, such as utility companies and asking if you can pay them a bit less for a few months, just while you get yourself sorted out. Just make sure that when you buy things, that everything you buy is something that you really need and that you have bought it for the cheapest possible price. This will take thought and mean that your shopping will take longer, but it will be worth it if you can save some money towards paying back that loan.

It can also be worth seeing whether you have anything that you could sell to make money. You may have things that you no longer need, perhaps things you do not use or think that you will not want in the future. Even if the things are of a small value, they could still raise some much needed money for you. These could be sold on social media groups, online auctions or a garage sale. There are lots of options for selling things and you could end up raising the money that you need.

Working more can also help you to get some extra money. It may be that you could work some extra hours in your job and earn more money. This may not be an option for you, but there may be other ways that we can earn. There are now opportunities to earn online, perhaps doing freelance work or other things which could help get us extra money to help us out of this situation.

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