Tips For Managing Your Payday Loan Debt
Posted on: 23 March 2017
Payday loans are a good way to get the money that you need in a pinch. You might need to go to the hospital or purchase medicine and your insurance check hasn't come through yet. You might need to fix your car so that you can get to work but your check doesn't come until the end of the month. By leveraging your future paycheck, you can get the money that you need. However, it can be easy for you to fall behind in payments for such a small loan. You might forget that you have it. Like any debt, this can result in interest adding up to a huge degree over time. You don't want to pay more than the loan is truly worth to you in terms of convenience. Here are some tips for managing your payday loan debt so that you can use this service without incurring large amounts of interest.
1. Have Your Paycheck Directly Deposited to Pay Off Debt
One option is to set it up so that this one paycheck gets directly deposited into the account of the payday lender to pay off the debt, rather than your own account. This works best if the entire loan and the interest equals up to exactly your paycheck and if you don't need the money in your paycheck. This will minimize the debt that you incur because it will significantly reduce the amount of interest that you actually pay off since you're paying off the debt in one fell swoop.
2. Plan it Out
Determine what amount of money you are willing to put aside towards your debt each month. You should be putting as much towards this debt as possible because you want to pay it off quickly. Figure out how much you will owe the first month, including interest. Subtract what you will pay that month. Add on additional interest. Keep doing this until you eventually get the amount of money that you have to pay down to zero. This will show you how long it is going to take and how much debt you are going to incur through interest. This will help you stay on top of your payments, essentially earmark cash for the payment before you spend it on other stuff, and ensure that you know how much interest you are going to generate.
For more information, talk to a company that specializes in payday advance loans, such as EZ Check Advance.
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