Nobody wants to get into debt, but there are some worst situations in life that leave no other way out. We never know when we will face a financial emergency, and if you don’t have enough savings to deal with the issue, payday loans are the only trusted solution. Some studies reveal that around 12 million Americans choose to get payday loan per year. But almost 60% of them get trapped in such debt, and they end up paying a huge amount at a later stage due to delayed payments. If you are also one of them, it is better to find some ways to get rid of your payday loan debt.
Why people get buried to payday loans?
Payday loans are well defined as unsecured personal loans that are generally taken by people for short duration. In general, the only requirement to get a payday loan is to have a regular job and an active bank account. Hence, these loans are easier to avail as compared to traditional loans; but there are few reasons why people often get trapped into these loans:
Payday loans are better known as short term or quick loans, but in actual at an average, the borrower stays in debt for almost five months every year.
These loans come with huge interest rates.
Most of the time people borrow these loans for wrong reasons and then fail to make repayments on time.
What to do if you are trapped in payday loan debts?
There are so many options to get out of payday loan debt, but you have to be careful enough to choose the best one:
Extended payment plans:
One of the most commonly recommended solutions for extended payment plans is to extend your loan installments for a longer duration of time. Such settlements can be done through a loan agreement, and it generally doesn’t involve any additional fee. But in case if you miss the repayments, it may include a considerable defaulting fee.
Reconstruct the payback:
Some payday lenders are more lenient, and they try to offer better options to the borrowers. They can help you to reconstruct the loan payment with a better plan so that you can find easy ways to repay the amount without creating any financial burden on your limited income.
Negotiate the settlement:
In case if the lenders are not ready to extend your payment plan and don’t even want to offer any reconstruction option, it is better to negotiate for the settlement. It can help you to resolve the debt at once by making payment for a lump-sum amount as suitable to both parties.
Payday loan consolidation:
The best solution for the payday loan borrowers is to apply for payday loan consolidation. For this, you may need to find a reliable lender in the market who can help you to close all payday loan accounts while adjusting the entire range to a single consolidated account. It will help you to avail extended payment options with lower interest rates. Most of the experts advise using this technique to avail fast payday loan relief.