Business & Finance Bankruptcy

How to Get Out of Debt With Payday Loans

    How to Get Out of Debt With Payday Loans

    • 1). Build a $500 emergency savings nest egg if possible, such as saving $10 per paycheck for bills that are unexpected.

    • 2). Put aside some money every paycheck for big bills that will be due once or twice a year, like insurance, holiday or birthdays gifts, and upcoming vacations.

    • 3). Search for a reputable credit counseling agency. They provide tools and offer a wide range of services, like budget planning and debt consolidation plans.

    • 4). Ask family or friends to lend you money. Offer to write a promissory note to pay to avoid strife later. Apply for a short-term loan with your bank or credit union. Use a credit card for emergencies only and pay balance off sooner. Although not cheap, credit card cash advance fees are only a small fraction of what payday loans charge.

    • 5). Ask for payment delay for non-interest bills, such as utility or telephone bills, and make arrangements to pay. There may be extra cost or fees when delaying payments for these. Delay car repair expenses by exploring public transportation options or carpooling until you have the cash. Use some of your saved-up emergency fund. Work overtime to bring in more income. Sell something you no longer need to get its true value. Adjust the amount withheld for taxes to have more money on your paycheck instead of over-withholding in order to get a bigger tax refund.

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