If you’ve relied on payday loans to make ends meet in between paychecks, chances are you quickly found yourself under a pile of debt that is extremely difficult to climb out of.  It’s also typical for someone who has borrowed from a payday loan to end up having to use another payday loan service before the first one is paid off – because the payments on the first loan end up eating too much of their income to keep up with their living expenses.  It’s a vicious cycle, but the good news is you can pay off your payday loans and never look back!

Create a Budget

The “B” word is never a good word for individuals experiencing tough times financially.  Even though it’s a dreaded word, the fact is – if you’re having trouble keeping up with your living expenses, a budget is the answer to your prayers.

When you know how much money you have coming in each month, and how much money you have to pay out each month, you can accurately plan what to do with each of your paychecks.  If you pay $800 a month in rent, you know you should set aside $200 each week to cover rent when it comes due.

If you find that your expenses are greater than your income – you  need to get a second job, work overtime, or find ways to decrease your living expenses drastically to ensure you are earning enough to pay your bills and living expenses.  This is probably what lead you to borrow from a payday loan in the first place.

Decrease Expenses to Pay Loan

Be committed to paying off that payday loan.  If it means canceling your cable television service or downgrading your cable from 600 channels to 30 channels for a few months – so be it!   In all of your expensive categories, look for ways to reduce what you are spending.  Whenever you are able to save money, send that money immediately to the payday loan.  These additional payments will chip away at the loan and help you pay it off faster (therefore saving interest and finance fees).

Plan for the Future To Avoid Payday Loans

As soon as you’ve paid off your payday loan, you need to figure out how to manage without relying on them.  While they might feel like a quick fix to an immediate problem, the fact is the interest and fees end up costing you so much money in the long run and putting you in even more financial difficulty. 

 Set up a savings account for emergencies and set aside a few dollars every single payday.  Even when you don’t think you have enough, put $2 or $3 into the account.  If you save consistently, it will eventually build up and give you some emergency cash to use instead of another payday loan in the future.