Payday loans can turn to be an expensive option if you do not pay them off on time,so you have to find a way to pay off these loans quick. Let us look at some ways through which you can pay off your payday loans the smart way.
Go Through the Terms of The Loan
Now, when you go for payday loans, then it is essential that you should check the terms of the loan. Some loans have a penalty if you end up paying them early.
Think Along the Lines to Go for A Guarantor Loan
The guarantor loans have a lower rate in comparison to the payday loans so what you can do is go for the guarantor loan. Use this loan to pay off your payday loan with a high rate of interest.
Consider Opting for Debt Consolidation
If you have to pay multiple loans, then the wise approach will be to consolidate your payments so that you only have to make a single payment every month.
Take Funds from Your Retirement Account
If you are eligible for the 401(k) loan, then you can use this amount to pay your payday loan. However, make sure that you do not deplete your retirement account. However, it will be fine if you will use only a small amount from your retirement account.
Select Your Insurance Amount
You can also make use of your life insurance amount to return the payday loan. The benefit of availing the insurance amount is that the rate of interest is low.
The mistake some people do is that they stick to the monthly payments only. Well, it will not be a good idea. What you should try to do is make small payments between your monthly payments. The benefit of this exercise is that you will get rid of your debt super-fast.
If you are unable to make the monthly payments of your payday loan, then the best approach will be to contact your lender right away. If you maintain silence, then it will make things worse for you.
At the same time, you should contact a financial consultant to guide you in clearing your payday loan. What your lender might do in this situation is that he may suspend your debt when you are in the process of developing a repayment plan with your financial advisor.
Some lenders are extra considerate to a responsible borrower. What they do is freeze charges and interest for some time till the borrower can pay back the loan.
Most lenders adopt a solution-oriented approach when you are upfront with them about the problem. Secondly, you will buy your peace of mind by being honest with the lender about your payment issues. They will not bombard you with emails and phone calls because they will know that you are working on a solution.
If you need to pay your payday loan and repayment is an issue, then you may contact https://icash.ca/. They will grant you a loan at a reasonable rate.