Don’t Play Ball With Payday Loans

by Mike on November 30, 2016

Don't Play Ball With Payday Loans

In today’s economy, it’s very easy to fall into the trap of payday loans. When people have absolutely no money, but tons of bills to pay, it’s easy to fall into the trap of getting yourself a short-term loan. Companies know that sometimes there’s no choice. And, they capitalize on this to make as much money as a possible.

See, they know that if they can lend you money because you’re desperate, you will probably struggle to pay it back. This forces you to request later repayments or to take out another loan. Obviously, with this cycle, your debt will only grow. You can’t pay enough back to clear it all, and the interest rates on these loans are horrendous. So, you’re trapped. Or are you?

There are a few ways to dig yourself out of the payday pit, and it usually isn’t too hard. Some methods can help you from falling into the trap altogether, and some can help you get out of it. This post will go over one method from each side, to give you can idea of how to deal with the situation you’re in.

Credit Cards

As a response to payday loans, credit card companies will usually offer a year of interest-free balance. You have to move your debt to the credit card when you first apply. But then, you won’t have to pay any interest on it until the free period is up. This stops the loan from growing and gives you much more time to sort out the problem.

It’s best to go for a credit card that is provided by your bank. You might not be able to borrow very much, but if it’s for debt consolidation, they’ll be more forgiving. Your bank will also be able to offer you advice to help you clear your debt as quickly as possible. They’re not out to make a profit from you, and care about your money. So, they won’t lie to you or hide information to force a sale. This is a great way to manage your debt if you already have it.

Long-term Poor Credit Loans

For most people who need a payday loan, it’s because they don’t have a good enough credit rating for a traditional one. Bad credit loans are just like traditional loans, except they charge a higher interest rate to cover the extra risk it takes to invest in you.

These loans give you a chance to get back on track before you need a payday loan. If you’re not going to be able to pay a payday loan back, it’s probably because you need more money anyway. It’s better to get that money all at once and pay it back at a rate that works for you. If your situation changes with one of these loans, it’s easy to restructure your payments to make it more realistic. Companies like online evolution money loans can offer these services, and will only do so if they think you can pay them back.

Getting out of debt can take a lot of time and effort. But, ultimately, it’s well worth it. Once you’re free from debt, all of your earnings go straight to you. It will give you a chance to save up for bigger things and emergencies, and stop you from getting into debt again.

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