Living from paycheck to paycheck can be a real challenge, especially when you're hit with an unexpected bill or a sudden emergency. In those situations, a cash loan that requires no bank account or credit card can be a lifesaver. However, once you've paid off your bill or dealt with the emergency, you now have to figure out how to pay back the cash loan on your same meager budget. Trying to figure out how to repay an emergency short term loan can become a source of real stress. Take a look at some realistic tips for paying back your loan without going into more debt.
Practice Creative Cost Cutting
Ideally, you will want to pay your loan back in full by the original due date, without needing to renew it for a fee or take out a new loan a few days later. While this can seem difficult on a tight budget, you can often cut your expenses drastically for a short period of time with some out of the box thinking. Save your gas money by walking, taking public transportation, or carpooling whenever possible for a few weeks. Pack lunches at home instead of buying lunch at work, and bring your own coffee in a thermos instead of buying coffee on the way to work. Choose generic brands in the grocery store instead of name brands.
Throw pennies and change in a jar, and see how fast they pile up. Consider holding a garage sale or advertising on a free online classified site to get rid of unwanted items for some extra cash. If you have a few weeks or a month to pay off the initial loan, you may be surprised by how fast these small efforts add up. With a little perseverance and planning, you should be able to pay your loan off and resume your normal spending habits. However, if you need more time, you still have other options.
Ask About An Extended Payment Plan
If you took out a cash loan from a lender that is a member of the Community Financial Services Association of America (CFSA), you may be in luck. All members of the CFSA offer loan customers the option of entering into an extended payment plan if they are having difficulty paying back the original loan. Under the extended payment plan, you'll be allowed several additional weeks to pay off your cash advance for no extra cost. You can be approved for the extended payment plan no matter what your reason is for needing extra time – the only requirement is that you ask for the plan by the close of business on the last day before your loan is due. This additional time will allow you to pay the money back in smaller increments, so that it will have less of an impact on your weekly budget.
If your lender is not a CFSA member, it's still worth asking if they offer any plans or adjustments for customers experiencing financial hardships. It's in your lender's best interest to work with you to get your loan paid off, rather than losing money when you default on the loan. As soon as you suspect that you may not be able to pay by the originally agreed-upon due date, honest communication with your lender should always be your first course of action.
If you have more than one cash advance loan, making multiple payments several times a month can become an unwieldy burden. If that is your situation, you may want to consider consolidating your payday loans into one payment. This can be accomplished in one of two ways. The first option is to find another form of financing, like a personal loan or a credit card cash advance. You can use that funding to pay off all of the various payday loans, and then simply make one monthly payment on the personal loan or credit card.
However, if those funding sources are not an option for you, you can also look into a payday loan consolidation program. These programs are similar to credit card consolidation programs. The consolidation company will work with you and your lenders to reduce your interest rates and fees, and will find a monthly payment that you can realistically afford. You'll pay the consolidation company the monthly payment, and they'll disburse the money to your lenders until your loans are paid off.
Remember to read your loan contract carefully, make a note of your due dates, and stay in communication with your lenders. These are all important steps in staying on top of your loans and managing your debt effectively. Click here for info about cash loans.