Payday loans are convenient when you need money immediately and don’t have the credit score to borrow from most financial institutions. Unforeseen problems may come up and you find yourself struggling to meet your commitments. There are a few strategies that you may use to pay off your loan and avoid late fees, penalties and additional interest.
Borrow From Family or Friends
Borrowing money is often unpleasant but there are times that you have to put your ego aside and ask for help. Family and friends are far more forgiving than loan lenders and are more willing to give you a longer grace period. They also don’t charge interest. Consider borrowing the money from family or friends. Be upfront about your financial situation and when you can reasonably expect to pay back the loan. The first priority is to clear the debt.
Negotiate With Your Lender
Sometimes the solution might be to simply call your payday UK lender and inform them of your situation. At the end of the day, the lender wants to get his money back and that may mean negotiating an extended payment plan. Ask about any additional interest or fees that you might have to pay for the loan extension. In an ideal situation, you shouldn’t have to pay any more, just pay what you owe currently but over a longer period of time. Committing to paying even a small amount at a time shows the lender that you are serious about repaying the loan and keeps the collection agency at bay.
Ask Your Employer for a Cash Advance
Consider asking your employer for a cash advance on your salary if this is an option. While at it, come up with a strategy to ensure that you don’t again find yourself taking out a loan because your pay check falls short for the month. Many employers are willing to consider cash advances for long-term employees who have a good standing at the company.
Speak to a Credit Councillor
There are free resources available to people facing debt problems. Speak to a councillor for professional advice on what you can do to manage your debt situation. This may likely mean consolidating your debt and paying it off over an extended period of time.
Sell Items You Don’t Use
Online sites such as eBay and Craigslist have made selling easier than ever. You don’t even need any sales experience to sell online. Choose a few valuable items that you either don’t use or aren’t as valuable now that you are facing mounting interest and additional charges.
It is important that you begin to brainstorm ideas as soon as it becomes apparent you may not be able to repay your payday loan. Ignoring the issue simply leads to additional problems. Speak to your lender and you might be surprised of how accommodating payday loan companies can be as long as you show a commitment to repay the loan.