It may seem like a good idea at the time to take out a payday loan, but things can quickly get out of hand. The endless escalating payments can catch you in a debt trap that is hard to get out of, but even if you feel trapped, you shouldn’t lose hope. There is a way to escape your payday debt, and it doesn’t involve you getting into more debt.
1.Extended Payment Plans (EPP)
It is a requirement in most states that payday lenders have to offer EPPs, which are procedures that allow you to repay your loan over an extended period (generally up to four payments every week). All payday lenders who are members of the CFSA trade association have pledged to offer extended payment plans to borrowers struggling with repayment.
2.Debt Consolidation Loans
The best option to escape payday debt is to apply for a personal debt consolidation loan. You can borrow money at low interest rates and use the funds to repay your payday loan entirely and other high interest debts you have accumulated, like credit card balances.
3.Debt Management Plan
If all your options fail and you are struggling to pay off your payday debt, your last option would be a debt management plan (DMP). When you get a debt management plan, you will be working with a certified credit counselor, who will come up with a debt repayment schedule and a budget, and may also negotiate with creditors and payday lenders to accept less money than the amount owed by you.