- Smart Help With Payday Loans
When most people are thinking about how to get out of payday loans, they often assume that the solution is paying off the loan with another. However, it isn’t. Unfortunately, this is an all too familiar problem.
It is common knowledge that it can be quite scary to be in payday loan debt. If you have a looming repayment date and cannot afford to repay, there’s some light at the end of the tunnel. All you have to do is follow the 5 steps below to help in dealing with payday loans that you are unable to pay.
- Stop Panicking
Payday loans are often marketed as a way to fund a ‘one-off’ expense that’s unexpected, such as a car MOT. However, the reality is that about 40 percent of people use payday loans to pay for essential items such as gas and food or rather getting to work and putting food on the table.
25 percent of people use payday loans to repay other forms of credit. If payday loan debt is something you are struggling with, stop panicking since you are not alone. It is possible to become debt free without the need to take any additional loans.
- Step the Borrowing Cycle
One common trap that people tend to fall into is not actually being unable to afford it in the first place, but rather feeling that there’s no way out besides taking out another loan followed by another, and so on.
You must stop this cycle. Taking out loans constantly one after the other might seem like a fix to your problems, but it isn’t. Drawing a line undertaking multiple payday loans will help you stop sliding deeper into debt.
- Cancel Your CPA Payday Loan Payment
Payday loans are non-priority debts, which means that they should only be paid from the money that remains after you have paid priorities such as living costs, food, household bills, mortgage, and rent. If by paying back your payday loans means that you will run short of money to pay for priority expenses, you need to stop the money being taken.
When you were applying for the loans, you provided your card details to set up the Continuous Payment Authority (CPA). It is how the vast majority of payday loan companies take repayments. However, it is a direct link to your bank and the payday lender is free to take the money whenever they feel like it. If you don’t have sufficient funds to cover the full repayment they often try several times.
If you don’t have enough money in your account, the bank will slap you with some charges. So, if you are unable to afford it, it is better to cancel your CPA. It is easy to do:
– If it is the date the payment is due, call your bank and request for the cancellation of the payday loan payment.
– If it is between 1 and 5 days away, email a letter to your bank.
– If it is more than 5 days away, send a letter to your bank by post.
To keep the payday loan company in the loop, it is advisable to send a copy of the template letter to them too. However, do this only after the bank cancels the CPA.
- Repay Only What You Are Able to Afford
One of the main issues that people have over the operations of payday lenders is the collection process. The reality is that nobody can make you repay more than you are able to afford. You can tell how much that is and even prove that to the payday lender using tools such as the Debt Remedy tool.
What is Debt Remedy?
It is an approach to giving free debt advice online to anybody in need of it. It is both a debt solution and money management tool that works out the available options depending on your budget. It is easy to use, quick, and you never even have to provide your name.
How Do You Use the Tool?
You simply enter your income and outgoings. The tool will then budget payments such as bills and rent to ensure that the most important companies and people get paid. It then provides you with a personal action plan that will help you deal with your debts including any further step you should take.
Can I Talk to Somebody?
Yes. If this is what you prefer, you and call and speak to one of the debt advisors.
- Living a Life Without Payday Loans
You have stopped the borrowing cycle and regained control. With professional debt advice and budgeting assistance through the Debt Remedy tool it is possible to manage your outgoings within your income, without having to take additional credit.
Its possible to clear your arrears, budget for priorities, budget for future payments, and receive one of a range of debt solutions to help in the management of your debt over the longer-term, but only if you have the right partner.