When you need money fast, a payday loan may seem like the perfect solution. But if you can't pay it back before it's due, you may find yourself in a cycle of increasing debt. Interest and fees can quickly add up, making it difficult to get out of debt. Fortunately, there are ways to beat payday loans and get out of debt.
The first step is to determine how much you can pay on your loan each month. Contact the lender or payday loan company to let them know that you won't be able to pay the full agreed payment on time. You may be able to extend the payment or cancel the loan entirely. You may also be able to get help from family or friends with a good credit rating.
They can help you get a better loan to pay off your payday loan. Alternatively, you could look into debt consolidation programs or settlement plans, which involve a third party taking responsibility for repaying your loans. In some cases, filing for bankruptcy may be an option. Most debtors will be able to completely cancel their payday loans in the event of Chapter 7 bankruptcy, or they may include a payday loan as part of a Chapter 13 plan.
Finally, there are many investment avenues, such as mutual funds, insurance plans, and federal bank funds, that can help you in times of need so you don't have to apply for a payday loan in the first place.