Entering a cycle in which you have bad credit and a payday loan is dangerous. You can be spending money you do not have to spend just to try and pay off the payday loan. For this reason we have some information to help you if you need help with payday loan with bad credit. The following steps should help you get out of the cycle you are in with payday loans and even help with bad credit in the long run.
No one likes to admit that they have a problem; however, this is the first thing you must do if you want out of the bad credit cycle you are in. You have to realize that you have an issue with your debts, even if it is just to yourself. It helps if you have someone else you can speak with about your debts though. If you do not have a family member you can speak with then consider finding a debt management company. There are non- profit companies out there that will help you look over your finances and listen to you and what you wish to do to get out of the debt you are in.
You will need to fill out a blank sheet of paper, or if the company provides you with a budget sheet fill that out. When you outline your expenses, incidentals, income, and any other financial information you have it will give you a better idea of where you sit financially. It may be a little scary if you see your expenses for the month are $3000, and you only make $2000. It may further scare you to see your total of debt. This total would be the mortgage, lines of credits, and any payday loans you are paying on. Most individuals with a mortgage have over $200,000 in debt, and earn less than $50,000 a year.
After you see what your expenses are, you need to create a sheet for when you pay the expenses each month. You also need to include when you get paid on this sheet. This will help you assign the money you earn to where it can go. From this point it is possible to see if you have a solution for getting your debt paid off, especially the payday loans that might be hindering your monthly income. A payday loan is often a short term loan that is paid back when you get paid. If you have one of these it must be paid off, even if this means you will have to miss a payment on another expense.
Now, it is never a good idea to miss a payment, but there are certain expenses that will work with you regarding payments. In your monthly expenses do you have any medical bills? If so call up the company and explain your situation, and that you need to make a payment late, but you will be making the payment. Second, look at your utilities. Utility companies tend to work with you if you can pay a portion of the amount owed. You still have to pay the full amount, but you can buy some time.
Once you have bought a little time it is best to pay off the payday loan and stay away from this type of loan ever again. You can also begin to look at other solutions for your debt. Do you own a second car that you could live without? Is there anything else you could sell to get a little income saved up towards your bills? Are there areas in your expenses such as dining out and entertainment that you can cut down? If so begin doing this.
Bad credit can make it hard to get a line of credit like a personal loan, but have you considered refinancing your home? Is it possible to get your mortgage payments lowered or to take equity out? If you are in a really bad credit situation a bank may not be willing to work with you. On the other hand, they may allow you to refinance in order to keep you from defaulting on their mortgage.
No matter how bad your debt is there are solutions. You just need to take a stand with your current situation and realize where you are financially. Once you have that under control you can take a step back, end the panic, and begin to find the right solution.