What to do if you don’t have money to repay a Payday Loan?
Are you stuck with payday loan debt? Are you suffering because you don’t have sufficient funds to pay off the loan? If you don’t have enough money to ultimately pay off a payday loan, the first thing to do is take a deep breath. You will have to look for ways to supplement your main income and reduce your expenditures until you pay off payday loan debt. Or you could look for ways to consolidate any outstanding debts you may have.
Cashco Financial Flex Loans for debt consolidation
One of the ways to get out of debt is by getting a medium to long-term personal loan called a Flex Loan. Debt consolidation using a long-term installment loan is recommended by many experts because the rate of interest is much lower than short-term unsecured loans and revolving debts like credit card cash advances and lines of credit. Moreover, the rate, the tenor, and the monthly installment amount are fixed when you get approved, so you can formulate a suitable budget plan.
Cashco Financial reports your payment records to credit bureaus in Canada and with every timely payment, your credit score improves steadily. Flex loans, despite credit checks, are very easy to qualify for since Cashco believes in putting trust in those who may not have an ideal credit score, but are committed to paying back the loan. With headquarters in Edmonton, Alberta, Cashco Financial operates out of multiple towns and cities in Canada. But if you need a loan now and don’t have time to head into a branch, just apply online.
If you fulfill all the criteria and provide the supporting documents, the loan is deposited directly into your account. Moreover, Cashco Financial agents offer financial counseling guidance and help you understand all the rules and formalities. Unlike other lenders where tellers make you wait outside a bullet-proof glass cubicle and talk to you over an intercom like jail visitors, you can walk into a Cashco office anytime and discuss your needs sitting down at a desk with our employees.
Other options for you to consider
If you are wondering how to get out of payday loan debt with other methods, well here are few more options.
- Debt Management Program (DMP): One of the best options to reduce your payday loan debt is to get into a debt management program either with your payday lender or get a free credit counseling session. This program allows you to tackle your debts in ascending or descending order of amount due. It means you start off by paying off one debt in full while simultaneously paying the minimum amount for the others. You will also have to keep an amount separately for the utility expenses. You will also have to reduce your discretionary spending and use the savings amounts to pay off the debt. This plan usually works well for unsecured payday loans if the debt becomes too big to be even consolidated. However, DMPs can lower your credit score and limit your chances to get new loans. You could also attract higher rates of interest.
- Debt rollover: Not all lenders may allow you to extend or defer the deadline for payment of a payday loan since it is technically supposed to be short-term. Also, you may or may not be allowed to use the proceedings from another loan to pay off this loan. However, some lenders allow rollover. However, it will be in your best interest not to take another payday loan to settle your payday loan debt if you don’t have enough money on your own to settle the debt.
- Inform the lender and look for other payment programs: It is always best to take your lender into confidence if you feel you have reached a stage where you can’t afford to settle the payday loan debt. Try and reach a one-time final settlement offer under which they forego their claim on the fees or give a huge concession so that you can clear the principal with a small fine. However, this will work, only if you have enough money to at least settle the reduced payment bill.
Not having enough money to repay your payday loan debt could tempt you to borrow more. However, first and foremost, you should end the borrowing cycle and start planning your finances more appropriately.