Legitimate debt consolidation company near youIf despite all your efforts, your payday loan debt never goes away, you might be in what is referred to as a payday loan trap. This cycle is so tough to get out of. Naturally, these loans have a tendency to trap well-meaning payday loan debtors into a series of debt they can’t get out of. Yet the thousands of storefront payday moneylenders, combined with infinite online creditors, generate $12 billion in charges annually. Below are a few steps you can take to assist you in getting out of this trap.

How to Get Out of Payday Loan Debt

  1. Try a Payday Loan Consolidation Program

Consolidation programs are intended to put all your payday loans in a single payment strategy. It can be the most effective choice for lowering your payday loan debt, but there are lots of rip-off artists out there. 

  1. Settle High-interest Debts First

Start by arranging all of your debts. Spend time reading each loan contract to understand. You should always make plans to pay the loans that attract the highest interest first because of the way interest expenses work, the more the interest, the more you owe.

  1. Ask for Extended Payment Plans

Payday money lenders may not be your friends but they do need their cashback. If you contact them and inform them you are unable to pay, they may give you reduced interest rates or an extended payment plan. 

You can also enquire if they give extended payment plans (EPP). It is not always a must that they offer, but it doesn’t hurt to enquire. Make sure that you ask several individuals when you inquire since payday sales agents aren’t the most truthful persons around.

  1. Find out if you can Get Personal Loans

Payday loans aren’t the only type of loans offered. There are other loans such as credit card loans, home equity lines of credit , and other personal loans intended for paying down multiple small loans.

  1. Get an Alternative Credit Union Payday Loan

How to pay off my payday loansNational credit unions are financial establishments that are smaller and less focused on profit-making because they don’t have stockholders. They often offer payday alternative loans which could be easier for you to repay. 

  1. Consider Non-profit Credit Counseling

Managing finances is not easy, and payday loans are among the hardest to understand. A credit counselor is a personal finance professional that can help you understand all about payday loans and also help you make a plan to get out of the debt trap. 

  1. Borrow from Friends and Family

Another option for obtaining cash to settle your debt is to request your family, friends, and community. It can be very humbling to do this, but this loan with no interest from a friend can really help you get out of the payday loan trap.

  1. Work Overtime

If you’re an hourly employee in America, you are eligible for overtime pay when you work over the normal workweek. 

  1. Do side jobs for extra cash

There are so many side jobs in today’s gig economy. Anyone can earn a few extra dollars, walking dogs for Wag, driving for Uber, or delivering food. Use your extra time well.

  1. Avoid Borrowing New Payday Loans

This is unquestionably paramount. Avoid taking on new payday loans at all costs. Do whatsoever needs to be done. Work overtime, save money, talk to a credit counselor or borrow from friends, but do not go back into the trap. The short-term release is not worth the long-term liability that you are attempting to escape.

Online Payday Loan Debt Relief At Encompass Recovery Group

At Encompass Recovery Group, we offer a guarantee on your debt consolidation. We negotiate with lenders and make sure that you settle what you can manage to pay for. With this, you can get out of debt quickly. Call us today at (877) 769-0109

References and Resources

Consolidate your unsecured loans

Credit and debt management