Payday loans can be an excellent way to boost your finances when you’ve had a bad month. It’s a short-term loan that usually comes with higher interest rates. If you’ve taken a payday loan but something unpredictable has happened to your finances and now you can’t pay it all back in time, we’re here to help you. If you’ve chosen your lender carefully, there’s a couple of things you can still do when you’re struggling to settle your payday loan.
Here, we’ll go over them all, so keep on reading to learn more.
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1. Speak with your lender
The first thing you should do when you’re struggling to pay back your payday loan is speaking to your lender. They’re obligated by law to help you by providing you with resources, options, and advice for settling your loan. Remember to do this as early as possible to ensure you’re treated fairly. If your lender, for any reason, refuses to help you, you can always file a complaint. Remember, it’s their obligation to hear you out and help you find ways to craft a viable repayment plan.
Besides that, you should be given an appropriate amount of time to pay the loan back. It’s just how it’s all set up by the law, so both you and the lender stay protected.
Lastly, if you’re feeling like you’re being mistreated or harassed by your lender, you also have the right to complain. They’re not allowed to spam you with emails, calls, or even visits to your property.
2. Speak with a debt advisor
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The next thing you’ll have to do is seek assistance from a debt advisor. Your lender might recommend you one and if not, it’s still a good idea to seek their help on your own. The financial advisor can help you sort out your finances in a way that will allow you to pay off your debt in the most effective way possible. They can also help you learn to budget better, so you can avoid these types of situations in the future.
Make sure you choose a reliable debt advisor who has dealt with cases like yours before. This type of situation is more common than you think, so you shouldn’t have any problems finding a trustworthy expert to help you with your problem.
Besides helping you sort out your current financial situation, a good debt advisor can work with you on reaching your financial goals without ever having to take risky loans again. If you can’t currently afford to hire a debt specialist, you can seek free services from charity debt advisors. There’s certainly a couple of those in your area, so do your research until you’ve found one.
3. Call your bank and cancel all automatic payments
Chances are you’re paying off your debt through automatic bank payments. If you settled a deal with your lender and you’re now repaying your debt via a repayment plan, remember to call your bank to notify them of this. Notify your lender about it and call your bank to cancel these payments as soon as possible.
This is especially important if you’re out of money for basic necessities. Write down the date and time of the cancellation just in case something goes wrong and your money still gets deposited.
Of course, again, this should all be done with the approval of your lender. Do not do this before you’ve talked to them about your situation. Your current situation mostly depends on your lender, so the next time you decide to take this type of loan, remember to choose your lenders carefully. We advise you to consider only the most secure payday loans and you can visit WorldPaydayLoan for more information.
4. Hire a debt management company
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If you can afford to hire a debt management company, do so without hesitation. These professionals can work directly with your lender to find the best possible solution for both sides of the agreement. They’ll fight to get the most out of your situation and save you from getting your loan defaulted.
If your lender refuses to work with the company you’ve hired, you can file a complaint. In most cases, they’ll be obliged to do so by the Law.
Now, in case you’re struggling to afford living essentials for that month, hiring a debt management expert might not fit your budget. If that’s so, as we’ve mentioned before, seek help from charity debt advisors instead.
5. Make a repayment plan
Once you’ve gotten approval from your lender, it’s time to make a realistic repayment plan. You can seek help with this from the lender, as they’re obliged to help you. Learn your rights and don’t let anyone mistreat you. Even if things seem to be hopeless, you’ll certainly find a solution if you act quickly enough.
6. Whatever happens, always refuse to roll your loan over
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In some cases, your lender could recommend you roll the payday loan over. We strongly advise against accepting this, unless you’re certain you’ll get a large financial boost the following month. Otherwise, it will just complicate your situation further. You’d have to pay higher amounts of interest, which will make you owe them more than what you’ve originally signed up for.
Making a repayment plan is always a better option. It’s what your lender should help you do before even suggesting to roll your loan over. Keep this in mind at all times to get the optimal results in your specific situation.
The bottom line
If you’re not careful, a payday loan can turn into a complete disaster really quickly. Still, not all is lost once you begin struggling to pay it back. There’s a couple of things you can do to salvage the situation, as we’ve discussed above. As long as you know your rights and seek help from the relevant sources, you’ll certainly sort it all out in no time.
All in all, we hope our article helped you settle your loan a bit more easily and we wish you the best of luck in all of your future endeavors.
