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Step 1
Budget, now (not tomorrow). A budget can send waves of relief for the financially distraught. Yet few people actually create a budget. Why? When a problem creates too much anxiety, we tend to flee from it. The problem with using this tactic for finances is that we cannot get away from these issues. Creating a budget is the first step to taking control of payday loans.
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Step 2
Fix the cash flow. Payday loan dependency stems from cash flow problems. Are your bill due dates convenient for your payday cycle? Call your creditors and ask them to move the due date. Plan a menu until the next payday so that you are not making multiple grocery store or unplanned restaurant stops. The key is to know how your paycheck will last until the next one before the money is gone. Look online for a free cash flow template.
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Step 3
Have a garage sale or sell a few things. Payday loans are only a few hundred dollars. That reality is hard to see because when you don't have a few hundred dollars, it might as well be a million dollars. Putting together a garage sale or just selling a few things can go a long way towards that debt.
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Step 4
Look for creative ways to earn money. Websites abound that offer mystery shopping or survey earnings. Look in local ads for people who need babysitting, housecleaning, or any other service you can readily give. Remember, when the issue is a few hundred dollars, even an extra $30 or $50 can go a long way.
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Step 5
Eat away at it. If you have to re-advance, re-advance less than you are paying back. Before long, that smaller loan will be easy to knock out.
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Step 6
Ask for the repayment plan. Many states require that payday loan creditors offer a payback loan program. But there is usually a small additional fee and the extension is only a few weeks, meaning big mandatory payments. Before you accept it make sure you can afford it because, by law, no payday loan creditor can give you another loan until the extension is paid off, even if the extension is with another company.
