Pay off Pay Day Loan(s) Fast

Are you in the payday loan nightmare, believe me you are not alone. With today's economy gas and food prices are increasing. Finding way to pay bills can be stressful and as a last resort many families who don't have good credit are turning to payday loans for assistance but unfortunately sometimes then find themselves in the vicious payday loan cycle.

My advice should only be used as a tool or alternative to help you get out of debt.You borrowed the money, You Owe It. It's the Law.

Things You'll Need:

• Payday Loan Contract
• Reliable Resources

I am sure your well aware that payday loans should be used for emergencies only and as a short-term fix, as the interest on these loans can be ridiculous anywhere from 200 to 500 percent annually. Understand the terms of the loan.

If your having trouble paying the loan because of financial hardship, deal with the problem contact the lender and advise them of your current situation and see what forms of payment arrangement are available, but refuse to take out an additional loan. You never want to take out a payday loan to pay another one.

If you can cut back on your expenses in other areas such as entertainment, eating out, by all means what are you waiting on, do it! Do whatever you can to pay more towards the principal, it is very easy to fall into the cycle of just paying the interest on the loan.

See if you can borrow money from family and friends, I know sometimes it is hard to ask for help, but it is a lot cheaper than paying the interest on the payday loan. Look at the classifieds and see if you can find a second job to earn extra money.

Stop electronic debits from the lender from your checking account if you have not already done so. You can call at anytime during the loan period and request that electronics debits be cancelled. Only few customers are aware of this. The Electronic Funds Transfer Act forbids electronic access to an account as a condition for credit.

Contact a reputable credit counseling agency in your state. You can find one by calling (866) 703-8787 or visiting www.aiccca.org. The agency can assist with helping negotiate with your payday loan lenders, and can help you put together a financial plan to help avoid these financial situations in the future and get your credit back on track.

If your unable to negotiate with the lender, review the terms of the payday loan and keep in mind the terms differ by each state. See if there is a default clause yes I said it Default. Sometimes defaulting on a payday loan can be your best and last resort. Your not the first to default and you sure won't be the last. Contact the lender and let them know your in default, if they haven't already contacted you. Depending on the terms of the contract they can only charge you a certain percentage of interest and then your able to make payment arrangements on the balance due, but you don't have to worry about incurring any further fees on the loan.

Once your out of this debt, you definitely want to review your expenses and start properly managing your finances so that you don't end back up in this current situation.

Start and emergency savings and pay yourself you deserve it.

Tips & Warnings

• Pay the loans off fast as possible
• Get Help from a reputable credit counseling agency
• Start an emergency savings fund to use in the future
• Please review the terms of your contract and know your rights!

By LaKeishah eHow Community Member