Payday loans are a great way to take care of emergency situations when cash is short. However, you must be judicious in its use or you will find yourself in more financial trouble than when you started. It is best to remember some points when dealing with payday loans that nay keep you from having to get out of payday loan debt.
Short Term Loans
As readily available as payday loans are, they are only meant to be short term solutions to your situation. A quick fix to help you through a money crunch only meant to tied you over until next payday. Many lenders do offer you the option of extensions if you are unable to repay your loan on the established due date. Most will give a maximum of two one month extensions.
Keep in mind these loans come with a very high interest rate to begin with and asking for an extension comes with substantial penalties compounded in addition to this. Continually asking for extensions from payday to payday will eventually accumulate so much in interest and penalties that the borrower finds themselves in the position of being unable to fulfill their obligation. Suddenly he is not only in debt but in need of the proverbial ‘get out of payday loan debt’ loan.
Cash Advance Consolidation
In the event that cash advance loans become too overwhelming to repay with your current income a consolidation might becomes your most viable option. It is very important to take this step as soon as possible as delaying this action will only worsen the situation and prolong your debt woes. These consolidation loans are generally handled by a debt management company. These companies have you pay a much lower monthly installment to them and they in turn pay off the remainder of your outstanding balance to the payday loan lender.
Eventuall,y this can ease your debt and although it will take longer because you are paying a smaller monthly amount, that amount is at least manageable within the boundaries of your income. Although this is a fix for your financial situation, the key to managing payday loans, and not having to get out of payday loan debt, is to use them only for the short term purposes that they were intended and not to overextend.