How to Pay Off a Payday Loan

When you are short on money and it is almost payday, you may decide to get a payday loan. However, you must be aware that it is an extremely expensive thing to do. Payday loans are not long-term solutions. The interest is exorbitant, the payment plan is painful and the options to postpone payments are easy. This all adds up to be a good way to keep you in debt.

Instructions

1. Go to your nearest payday loan source, and take out a loan.

2. Take note of the payment plan they give you. It will often be until your next payday, usually one to two weeks.

3. Make the payments as approved. Do not put off the payment. You must be through with the loan on time.

4. Pay according to the arrangements you made when you set up the loan. Pay the loan off by paying at least the amount you agreed on--more is OK, but not less.

5. Borrow from your savings or some other option to make the payment if the due date comes up and you are unable to pay the balance with your paycheck. Overdraft protection offered by your bank would even be a cheaper option--and you will get over it quickly.

Tips & Warnings

• Every payday loan company gives you the option to renew your loan if you are having money problems. You renew, pay the interest and start your loan over again. They get the interest and the payments begin again. This could go on for years, and the high interest rates mean that you pay many times the amount of the original loan.