Lower Your Washington State Loan Payments With a Payday Loan Payment Plan
Everyone has heard of small cash advance businesses. They are generally referred to as payday loans. These loans are supposed to "get you by" and help cover your living expenses until your next paycheck. Unfortunately, payday loans can be hazardous for people. It is easy to get caught in a vicious, unrelenting cycle. A few reasons people may want a payday loan include:
- A bill that comes due but was not budgeted for
- Your vehicle breaks down, and money is needed to fix it
- Any unexpected medical expenses
- Daycare expenses or other unpredictable needs for children
The Hidden Dangers of Payday Loans
It can be daunting to live paycheck-to-paycheck. Not knowing if your bills will get paid on time and then having to deal with the consequences of being late on your payments. Unfortunately, too many people get caught up in the cycle of payday loans, which seem on the surface to be a good deal and help people out when they are down on their luck. Most people do not understand how harmful these programs can be. Here are a few dangers to consider before getting involved with a payday loan company.
- A seemingly endless cycle of debt: In many cases, the person seeking the loan truly believes that this is only a temporary solution to a temporary problem. However, if you can't pay off the payday loan when it comes due, it can turn into an ongoing debt cycle. Each time a person cannot pay off their debt in full, more fees are tacked on to what they owe.
- Fees: The high fees and interest rates associated with payday loans are extreme. It is similar to a credit card, where the APR is generally between 12% and 30%. Now, compare that to the fees associated with every $100 borrowed from a payday loan. You're looking at well over 200% to 400% per loan in most situations.
- Rollover fees: Be careful of this little financial trap. When it comes time to pay back your payday loan, and you can't pay the total amount, many lenders will allow you to pay a fee to extend your payment to the next date due. But then, there will be another fee that is tacked onto your principal balance for the extension.
How to Get Out From Under Payday Loan Debt
If you have been caught up in the cycle of debt that comes with a payday loan program, there are some things that you can try. Too many people wish to avoid paying these types of loans back legally. . The following ideas are not a guarantee, but it is worth the effort if you find yourself sinking further and further into financial distress.
| Loan consolidation | This is sometimes referred to as debt settlement. There are a lot of scams to be aware of, but they can be effective if a legit company helps you. |
| Prioritize | Be sure to always pay back your highest interest loans before others. That way, the debt does not keep on accumulating. |
| Extended payment plans | These are not ideal for everyone. However, they may be helpful to a certain degree in some situations. A word of advice always talks to a supervisor within the payday loan operation instead of a debt collector. See what kind of extended payment plan they have that can be more beneficial to your specific financial circumstances. |
| Credit counseling | There are nonprofit credit counseling programs that may help. Credit counselors are finance experts that can help you create and manage a plan to get out of debt. They can explain all about payday loans vs. installment loans. |
Here Are Some Tips to Avoid Payday Loans
Countless people get in financial trouble every year and seek debt relief. Payday loans can be tempting because they seem to be a quick fix. It is essential to avoid these options as they can be detrimental to the future of your financial health. Here are a few ways you may be able to avoid the high-interest, hidden fees payday loan game.
- Get a loan from a credit union.
- Ask a family member for a small loan.
- Work overtime or get a part-time job or side hustle.
Get Help Negotiating Better Terms for Your Payday Loan
Are you looking for ? The goal is to negotiate more realistic terms to pay off without accumulating more charges. The good news is that DoNotPay has a negotiation product available for this purpose. DoNotPay can create a negotiation letter for you. You can send this letter to the lender to request better payment terms.
DoNotPay Can Help Lower Your Payday Loan in Five Easy Steps
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 negotiation letter with one click, and use it to contact your lender to get better terms for your loan!
So, if you are looking for a solution to your payday loan problem, DoNotPay can help. Don't get caught up in the loop of increasing debt. There are ways to settle your payday loan and get back on track to financial freedom. Let DoNotPay help you today!