Pay day loans also known as cash advance loans or deferred deposit check loans are considered to be a good option to pay off debts in case of emergencies. It is popular because one can get immediate cash out of payday loans. However, the fees on payday loans are very high. Moreover as it’s quite easy to get a payday loan, it is very common for people to fall into payday loan traps. However there are ways to get out of a payday loan trap. The best way is to avoid getting payday loans.
Ways to get out of payday loan trap
1. Repayment plan – You can try negotiating a repayment plan with the lenders.
2. Getting money from family – If the lender doesn’t agree to repayment plan, you can try getting money from your family members and friends, and try paying off these loans.
3. Get conventional loan – If you have a good credit score, you can try getting a conventional loan to pay off the payday loans.
4. Create a table – Make a table on how much you need to pay. Strike off the one which you are paying off. When the amount you owe lessens, you will motivated to pay off the rest.
5. Pay as much as you can – Try paying the maximum amount that you can afford to pay off such loans. This will shorten the loan duration and thus the total money that you need to pay.
6. Avoid taking payday loans – The last but not the least is you should further avoid taking payday loans.
Payday loans are illegal in some states. If a person is a resident of such a state, he can easily get out of the payday loan trap. In such states, which consider payday loan as illegal, payday loans will become void. Thus, you need to know the state laws on payday loans.