How To Pay Off Multiple Payday Loans Fast
There’s nothing worse than feeling like you are buried under a mountain of debt you will never be able to pay off.
Unfortunately for millions of Americans that have taken advantage of payday loan services exactly how they feel. They feel like they are swimming upstream with their heads held underwater, not able to meet financial obligations and having next to no chance to get their financial future back on track.
According to information released by Pew Research, more than 12 million Americans take advantage of payday loan solutions every single year. Those same 12+ million Americans and up spending more than $9 billion on loan fees annually. It’s no surprise that many of them feel like they are more than a little bit behind the eight ball.
Research from the Consumer Financial Protection Bureau states that more than 60% of all payday loan borrowers end up trapped in a payday loan debt cycle. Millions of people and of rolling over their payday loan so many times that day finally end up paying more in financial fees than they actually looked to borrow in the first place.
It can get pretty ugly.
Combine that with the fact that a lot of people looking for payday loans and up searching for numerous payday loan opportunities to meet financial obligations, particularly in the middle of financial emergencies, and you can see how these situations spiral out of control.
Figuring out how to pay off multiple payday loans can feel almost insurmountable at times. But with the inside information we include below you will be able to help dig yourself out of any financial hole you find yourself in, learning how to navigate the world of payday loans so that you can come out on top.
Understand the structure of payday loans to avoid this situation in the first place
The more you understand about payday loan services the more likely you are not to have to worry about learning how to pay off multiple payday loans in the first place.
For starters, you have to recognize that payday loans are not a “short-term” fix – even if they are advertised that way. Your average payday loan is going to have you carrying debt for five months, and anything that stretches out over almost half a year certainly shouldn’t be considered short-term.
Secondly, you have to recognize that payday loans have skyhigh these attached to them. Average payday loan fees in United States sit at $55 for every 14 days the loan remains outstanding.
Finally, you have to recognize that payday loans should only be taken advantage of in the case of a legitimate financial emergency. Too terribly many people – more than 70% according to industry research – spend the money they get from payday loans on everyday expenses or luxuries, crippling their financial future because of these decisions.
Only leverage a payday loan – or multiple payday loans – when you absolutely have to and you will be able to mitigate the damage you could do to your long-term finances significantly.
Take advantage of extended payment plans
If you did your research and make sure that the payday loans you took out were always from companies that were members of the Community Financial Services Association of America (CFSA) you have the opportunity to ask for Extended Payment Plans (EPP) that will help you quite a bit.
These organizations that offer payday loans are going to give you a little bit of extra time to repay your individual loans, usually stretching things out over for extra repayment periods. This can give you quite a bit of breathing room to figure out your finances and to avoid going into collections, giving you ample opportunity to cover your bases with multiple payday loans without having to really strap your cash flow at the same time.
Not all organizations are going to be affiliated with the CFSA, however. It is still advantageous to see if you can get an EPP put in place with those companies all the same, though you might have to learn how to pay off multiple payday loans without an EPP all the same.
Look to leverage alternative lending sources
Payday loans are themselves an alternative form of lending but there are other opportunities out there for you to take advantage of that can help you secure plenty of cash to pay off your loans – though you will have another debt you will need to take care of later down the line.
Obviously you don’t want to simply shuffle the deck just for the sake of shuffling things around. You want to be able to pay off your payday loans by prioritizing high interest and high finance charge debts, but you also need to be sure that the new loan you are taking on is going to be more manageable.
Credit union personal loans, nontraditional lending opportunities, peer to peer lending opportunities, and other nontraditional solutions can be to help you figure out how to pay off multiple payday loans all at once and then leave you with a much more manageable (and ideally longer-term) debt to pay off later down the line.
Consider credit counseling
There are a lot of state-sponsored and federally funded credit counseling services all over the United States that citizens can take advantage of, organizations that are specifically set up to help individuals better manage their finances.
Private credit counseling organizations also exist and are more than happy to help you with your payday loan debt as well as your cash flow and budget situations, your money management situations, and your investment strategies for your future.
A lot of credit counseling services focus predominantly on helping their clients get out of debt – and this is exactly what you want to lean on a service for.
Tell them about the multiple payday loans that you have and are having a tough time paying off and they’ll provide you with a variety of different strategies to help you eliminate these debts ASAP. They will also go to bat for you negotiating directly with your creditors (with a lot of extra leverage behind them, too) so that you can actually end up paying less for your payday loans than you anticipated paying in the first place.
Make the most of debt management plans
Debt Management Plans (DMPs) are services offered directly from debt/credit counseling agencies and debt management companies, both government-sponsored and private.
These organizations are going to work directly with your creditors to come up with a monthly repayment program that works to both of your benefit, helping to make sure that your creditors receive the money that they were expecting while at the same time lowering your day-to-day financial burden so that you can actually meet these financial obligations in the first place.
One of the most important things to learn about trying to figure out how to pay off multiple payday loans (or pay off any debt, really) is that the creditors really want to be paid something. Too many people operate under the impression that creditors want you to default and want you to have a challenging time repaying That when nothing could be further from the truth.
If that was the case that they never get paid, they never make any money, and they would end up going out of business sooner rather than later.
These kinds of services can help you negotiate with each of your payday loan creditors so that you repay a little less money on a regular basis but still meet your financial obligations of same.
Consolidate your multiple payday loans into a single, manageable solution
Lastly, you could always choose to take advantage of a more manageable loan that consolidates each and every one of your outstanding debts – multiple payday loans and anything else you want to lock right into the final figure, for that matter.
Consolidation loans help you to get all of your outstanding debts from multiple different creditors (potentially with different repayment schedules, interest rates, etc.) into a single “lump-sum” kind of debt that you take on – almost always with a lower interest rate and a much more manageable repayment schedule.
All different kinds of organizations offer consolidation loans, including traditional national and local banks as well as credit unions. These organizations help you to get your debt under control by giving you the money you need to pay off individual creditors – multiple creditors, if need be – and then simply repay back the organization you took the consolidation loan out with.
Now, not everyone is going to qualify for a debt consolidation loan. You’ll have to do your research and due diligence to find a company or service that can provide you with the kind of financing package you are after, and you want to make sure that the consolidation loan is actually going to make your life easier moving forward.
Verify that you’ll end up spending less both upfront as well as in the long term by consolidating your debt all under one roof (so to speak) and you’ll have nothing to worry about. This is one of the best ways to figure out how to pay off multiple payday loans all at once and a proven tactic to make your financial life a lot more manageable at the same time.