Considering a Cash Advance Payment Plan? Visit DoNotPay for Help
Between constant collection calls and high interest rates, payday loans can be a nightmare to manage. Still, sometimes getting cash fast is the only way to deal with emergencies. In order to avoid shady loan companies, you might pursue a cash advance payment plan instead.
It might seem like a better option, but a cash advance is far from payday loan relief. It carries many of the same risks, but there's an easy solution to get out of both cash advance and payday loans.
What If I Quit Making Payday Loan Payments?
Like any loan, you legally cannot stop paying off your payday loan without a backup plan. Depending on the lender's terms, even one missed payment can put your loan in default.
If you default on your loan, you can expect:
- Frequent collection attempts from either the lender or a third-party collection agency
- Additional penalties and fees added to the total loan amount
- As many as 100 points off of your credit score (as per NerdWallet)
- Difficulty getting approved for financing in the future
For many borrowers without sufficient funds on hand, taking out another loan seems like the only solution. If you have good credit, there's a good chance you might get approved for a cash advance.
Are Cash Advances Better Than Payday Loans?
When you get a cash advance, you 're borrowing money against your credit card's line of credit. As such, you can only get this short-term loan if you have a credit or debit card.
These two loans are very similar: in fact, many payday loan companies even refer to their services as "cash advance" loans. Both are associated with higher interest rates and offer no grace periods to borrowers.
With cash advances, you're also expected to pay a 3-5% transaction fee to both the bank and the card issuer. Additionally, cash advances have separate credit limits that are much smaller than your personal credit line.
How to Get Cash Advances On Your Own
Like a regular payday loan, getting a cash advance is seemingly simple. You can get one by:
|Visiting Your Bank||Just go up to the clerk and request a cash advance through your debit or credit card.|
|Going to an ATM||If your card has a PIN number, you can get your cash advance through the ATM. Just remember: you can only take out as much as the ATM allows, regardless of the cash advance limit.|
|Writing a Check to Yourself||If your credit card came with convenience checks, you can just write one for yourself and deposit it. However, it may take a day or two to receive the funds in your account.|
Securing a cash advance still won't solve all your problems. Like payday loans, cash advances typically aren't more than a few hundred dollars. If you 've accrued too much interest from the payday loan, the cash advance might not be enough. In that case, you can still try to use the cash advance to negotiate a payday loan settlement.
However, there's no guarantee that the lender will accept your offer. Then you're stuck with a new installment loan in addition to the payday loan!
You can also still be denied a cash advance, especially with outstanding loans on your report. If this happens, you can try a few alternatives:
- Ask your payday loan lender if you are eligible for an extended payment plan.
- If the lender doesn't offer these plans, try to enroll in a payday loan consolidation program. Loan consolidation companies will take on your debt, but will still charge you a new monthly payment.
- Ask a friend or family member for help repaying the payday loan.
All of these applications and negotiations can take a toll on the borrower. If you 're tired of jumping through so many hoops, you'll be relieved to know there's a better solution.
Setting Up a Cash Advance Payment Plan with DoNotPay
Payday loans and cash advances put borrowers in a vicious debt cycle. They can't repay one loan, so they take out more in an attempt to pay outstanding balances. To avoid all that trouble, DoNotPay helps you get approved quickly for a cash advance payment plan.
If you want to lower your payday loan but don't know where to start, DoNotPay has you covered. Lower your payday loan in 5 easy steps:
- Search "Negotiate Payday Loans" on DoNotPay.
- Enter the state you took out the payday loan in.
- Tell us the amount you borrowed, the date you took out the loan, and when the payment is due.
- DoNotPay will automatically calculate the APR on your behalf, and determine the best way to negotiate your case based on the amount.
- You're all set! You can generate your personal negotiation letter with one click, and use it to contact your lender to get better terms for your loan.
As you can see, DoNotPay is the best solution for cash advance payment plans because:
- It takes seconds to write your negotiation letter
- There's no more worrying about taking out more loans for funding
- Our intelligent AI is specifically programmed to win your case
DoNotPay Provides Seamless Negotiations for Every Lender
Any Other Problems? DoNotPay Has Your Back.
DoNotPay also provides:
- Virtual credit cards
- Unclaimed money searches
- Help with chargebacks or refunds
- Entries to hundreds of raffles... with one click!
Best of all, signing up for every product is just as easy as lowering your payday loan through DoNotPay.