Payday financing is the best way to get some extra cash until you get your next paycheck, and they can be used for anything, starting from paying your bills on time, up to doing something special for yourself after a long month or a year of constant work and stress.
The great thing about them is that they are fast, and you will not be bound to spend months or years paying things back. However, we are not always able to pay the cash back on time, and we need a few more days or weeks to gather all the funds that we need. Here, we are going to list some things that you can do if you cant pay off your payday loan, and we will help you learn how to make the right choice even when you are under pressure.
1. Contact your loaner
The first thing that you need to do if you realize that you cannot give all the funds back on time is to tell that to your lender. It is far better to contact them on your own, explain your situation and be honest than to wait for them to contact you. Know that when they contact you there won’t be any room for negotiation, and they will not be patient or nice with you. They can even report you to the authorities and you may end up losing your possessions because of this.
When you contact your lender, you should tell them how much you owe them, and what your plan for the future is. If you need more time to pay the advancing back, you should ask if there is any room for extension and what would the conditions for this be. Know that more often than not, they will offer you different solutions and plans, and they can even help you with refinancing or with getting a second advancement or even a mortgage.
Since you will be given many options, you should take your time to consider them all, and see which one is going to be the best one for you. Don’t make a decision on the spot, unless you have to, and give yourself a day or two to do the needed research and find the pros and cons of all the opportunities.
2. Consider getting another advancing
The biggest risk with asking for an extension of your loan are the increased fees, interest, and possible penalties. You may end up getting yourself in even bigger trouble, and even if your lender approves you for an extension, you may end up giving them back far more than you have borrowed. Instead of that, you should consider getting another advancing.
This may seem illogical, but when you start brand-new, and when you close all of your existing debts, you will be able to make a better plan and have more time to gather the finances you need to close them all.
Platforms like SpeedyCash can help you get the cash that you need within minutes, and you won’t have to wait for days or weeks to get approved. You will have all the funds you need to close the previous debts and start fresh.
3. Ask your friends for help
Borrowing money from people you love can backfire, especially if you are not able to pay them back right away, but it is a far better option than to get in trouble with your lender or the law. So, if you have any friends or relatives who might be willing and able to help, you should talk to them.
Approach them with your issue, tell them how much you would need, and how long you would need to pay them back. Chances are, your loved ones will not ask you to pay any interest and you will give them back only the amount that you have borrowed. One thing that you should always remember is to be honest and never lie that you can pay them back in two weeks if you actually need four.
4. Make a plan on how to return it
The next step is to create a solid plan on what you can do to pay back all the cash you owe, and how you can approach this. If you can get an additional advancing, that will help you out a lot, and you won’t have to pay any penalties or fees. The next thing that you need to do is sit down and write down all of the money you are getting each month, and all of the expenses that you have. Find a way to balance between the two, and if needed, take a part-time job for at least a month or two until you have everything settled. You may need to work harder for a while, but it is better to push yourself to the maximum for a short time than to worry about rates and interest for months or years.
5. Talk to a financial advisor
In case you cannot pay off your advancing, then you should talk to a financial advisor that will help you create a full plan on what to do. Yes, this is going to be another investment, but this time it is going to be a step in the right direction.
Sometimes we are not able to handle our own finances, and we are not sure what to do.
Statistics have shown that there are millions of people who spend more than they need to, and who just don’t know how to handle their finances. A professional can help you out a lot with this, and they will calculate your income, your overall expenses, and they will help you learn how you can not only pay off all of your borrowings but also learn how to save more cash for the future.
These things are going to help you out, but remember that you can make adjustments depending on your specific situation. You should not feel bad about this, because there are millions of us who struggle with the same things. We all need some extra cash, and sometimes we just don’t have the right plan on how to settle our finances. Take your time, consider all the options, and remember to think with a cool head. Don’t make rushed decisions, and see all the things that you can do before you make your final decision on how to pay back the money that you owe.