Solidifying A Better Future For My Kids

3 Ways To Get Rid Of Your Payday Loan Balance

21 November 2016

Jackie Watts

If you had to take out a payday loan to pay for some unexpected expenses, you are going to want to make sure that you pay back the loan before the loan terms expires. If you fail to pay back the loan in time, you could face additional fees, which will only increase the amount that you owe. Here are three tips that should help you pay off your payday loan on time.

#1 Reduce Your Expenses

You needed to take out a payday loan because unexpected expenses came up in your life that you were not able to afford. In order to pay off your payday loan without creating a continuous cycle of debt, you are going to need to reduce your expenses. These reductions can be both short- and long-term changes to your budget.

To start with, get rid of any monthly subscriptions that you can pass on for right now, such as a subscription to a video or music streaming service or monthly subscription boxes. Take the money directly from pausing those subscriptions and put it towards your loan balance.

Next, see if you can reduce your cable and cell phone plans for the month. If you are able to cut down to a smaller plan, even if only for a few months, this can save you a good chunk of money. Again, take the amount that you would have paid for these bills and apply it to your loan balance.

Finally, look at your grocery and "going out" budget. If you regularly go out to eat, vow to stay in and cook all of your food for the month, and take that money out of your budget. If you have a really high grocery bill, look into crockpot meals and other strategies for cutting back and eating simpler this month. 

Apply every dime that you save to paying off your loan.

#2 Pick Up A Side Job

Depending on your income and the size of your payday loan, you may not be able to afford to pay off your loan and keep up with your expenses, even if you cut back on your budget.

If this is the case, try to pick up some side jobs in order to get a second stream of income going. You can pick up a gig-based job, such as using your vehicle to transport people or signing up for an app that pays you to run errands for people. You can also try to make some money by freelancing. For example, if you are great at math, offer to tutor in the subject, or if you are a skilled painter, look for house-painting jobs. 

#3 Make Small Payments

Finally, don't wait until your due date to pay off your loan. For each expense that you are able to cut from your budget, take that money and apply it to your loan right away. Take every dime that you make from your side jobs, and apply it to your loan. If you continually do this all month, by the time your loan due date rolls around, you should have a very small, manageable payment to make. 

For more information on payday loans, contact a company like EZ Check Advance.

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