Weekend payday loans sound easy and simple, but they can turn into your deadly nightmare if you default on paying them on time.
If you are already having a weekend payday loan and spending sleepless nights thinking about repaying them, go through the below guide and follow them strictly.
Monitor Your Debt
Check over your existing debts, your weekend payday loans, and all the overdue bills.
Select those loans first that come with higher interest rates.
This should be done because with higher interest rates, the more time you will take to clear off the weekend payday loan.
The more you have to pay off ultimately.
Reach out to the lender
Informing their lender as fast as possible will give the customers the maximum chances of figuring out a solution.
Moneylenders have departments dealing with financial hardships, if not at least agents acting as customer service executives, who can try to delay the next repayment dates.
This can help you to prevent the failed direct debit payment charges to be levied by the bank. After this, the lender will negotiate with the clients to decide upon an extended repayment plan or a solution on similar grounds.
Extension Of Repayment Plans
Consult with the lender about an extension in the repayment plan, and that may happen if the lender is a member of the Community Financial Services Association of America.
Although, it may only happen if you apply before the last day of your due date.
The customer needs to sign an amendment for agreeing upon the agreement.
The customer should go through the agreement thoroughly to make sure that he is well versed with the new rules and regulations mentioned in the agreement and that may ensure you a few weeks of time to repay the weekend payday loans.
Budgeting For Repayment Of Loan
Once the borrower makes arrangements for the extra time for repayment of the weekend payday loan, the entire budget needs to be redesigned. Borrowers must make sure of that, that they have sufficient funds in their account by the newly agreed upon date of repaying the loan.
Get A Personal Loan
Don’t get alarmed on the thought of big banks, at least while taking personal loans.
Though they sound similar to a payday loan, they are not similar. Understanding the difference between them is important.
A personal loan can take care of your debts while having a much lesser interest rate and longer repayment tenures than payday loans. Even with a bad credit score, as low as below 500, can ensure you a personal loan.
Take a personal loan and pay off your weekend payday loan once you face any such difficulty while making repayments.
Consulting A Credit Union
Credit Unions have a lot of common factors with payday loan lenders. They offer small installment loans to help us pay important payments.
Many credit unions provide their members with Payday Alternative Loans.
If you become a Credit Union member for a month, this is how you can get sanctioned any amount between $200 to $1000 with repayment terms of one to six months.
The good thing about PAL is their interest rate is much less than a payday loan up to 28%
When you are in a soup, seeking help from credit counseling or a co-signer is a good idea. A little help from them helps them to get back on track and thus pay back your existing loan.
National Federation for Credit Counseling helps to schedule an appointment with an expert to assess your financial health. With an issue of poor credit score and attempt of getting a weekend payday loan, a co-signer will be of great help.
But it should be remembered that while taking a weekend payday loan with a consigner’s help will impact both of you and so extreme caution should be exercised in those cases.
If any of your family or friend can help you by paying you the money that should be used because it is always easier to pay off a friend than a money lender.
Assess The Situation Well
Did you borrow a weekend payday loan? So if after reviewing your situation you discover that you are unable to repay your loan, then it’s advisable to discuss the situation with the lender.
Let him know about the hardship options. As a result, the outcome may cause an extension of your current loan term or providing you a fresh payment plan by the lender.
This step is very important for anyone especially those who don’t want to become a defaulter in the credit file.
You may think of taking a payday loan, but you will not always need it. If you have taken one, be cautious and know your rights. So follow the various ways of repaying it back as fast as possible, so that you can get out of the debt trap.