Financial Strategies For Paying Off That Payday Loan On Time

Posted on: 5 June 2017

Payday loans offer fast solutions to those suffering from cash flow difficulties, and, contrary to popular belief, they aren't just for those with poor or marginal credit. Some financial crises can't wait, such as looming utility shutoffs, and bank loans can take a matter of weeks to be approved, no matter how good your credit score is. However, you should keep in mind that strict adherence to the terms of the payday loan will be necessary in order to keep your good credit, and this may mean budgeting down to the bone until the loan is paid off. Creating a short-term crash budget for the purpose of paying off a loan is different from making a long-savings strategy, so keep in mind that the Spartan budget necessary to become debt-free will only be a temporary hardship. Following are solid strategies designed to help you avoid the pitfalls involved in failing to pay your payday loan off in a timely fashion. 

Slash All Non-Essential Spending

If you're like most people, you like to enjoy little extras such as going to your local pizza joint, seeing a movie, or visiting your neighborhood to catch up with friends and neighbors. After all, everyday life would be pretty barren if it were all just working and staying at home. Fortunately, there are still ways to enjoy life while living on a bare-bones budget. If you're craving your weekly pizza fix, try making pizza at home instead—you may even find that you prefer the taste of homemade pizza. If your children are used to enjoying various activities, take a look around your community and see what's being offered for free. Libraries and community centers generally have a good selection of free activities for children. If nothing else, a good old-fashioned trip to a nearby park will provide plenty of no-cost family fun. It also provides a prime opportunity to teach your children some valuable life lessons involving responsibility. 

Other ways to cut non-essential spending include:

  1. Have an energy audit. In most areas, local utility companies will come to your home for free to assess how you can use less energy, which will result in savings on utility bills. 
  2. Explore temporary government assistance options. You may be eligible for benefits that could help take the edge off of your current financial constraints. 
  3. Get a second job. You may be able to pick up hours after work at local restaurants, office cleaning services, retail stores, or other local businesses. Look through the online classifieds and contact a temporary agency in your community to see what's available. You may even be able to do something online, such as freelance writing, to earn money for the purpose of paying down your debts. 

Have a Garage Sale 

If you're like most people, you've got stuff lying around that you're keeping because you just might have use for it one day — but if you haven't used it in over one year, chances are, you never will. Putting it up for sale can make a significant dent in your payday loan costs. If hosting a sale in your home during specified times is something you'd rather not consider, it's easier than ever to have an online garage sale — simply post the items that you have on neighborhood social media groups and online classified ad sites, and arrange times to meet with interested parties.

Always contact your payday loan company if you're struggling with paying back your debt — they will be much more likely to work with you on a solution if you're upfront and honest about your financial situation.