Posted by on August 1, 2020
At times bills can be challenging to pay. Luckily some businesses offer help with bill payment. This help is called a payday loan. You can get a payday loan from many places, including, from a bank, at a store, or even online. A 300 payday loan is a short term loan meant to help bills, but if you are not careful, this loan can turn into more debt and financial trouble.
To qualify for this loan, you need to provide two things (1) a checking account (2) and proof of income. If payday lenders know this information, they can give you a loan even with bad credit. With this information, they can make more informed decisions.
There are a few pitfalls and problems that can develop when you take out a payday loan. The average amount someone borrows for a payday loan is 375 dollars. So let’s use 375 dollars in our scenario. In addition to paying off the loan, you would have to pay the payday lenders a fee of 55 dollars on the spot. With that, you get to walk out of that office with a loan of 375 dollars and pay back the loan later. With most loans, you can pay them back over time, but with payday loans, you have to pay them back all together. But if you still can’t pay off your bills by the next time you owe them, you will have to take out another loan. And then you have to take out another one the next period, and the deadly cycle begins.
To ensure that you pay your payday loan back before you get buried by debt, there are a few things you should consider:
- First, take some time to organize your debt. You need to know when you will be paying for different things. A great way to do this is to create a simple budget chart. Your budget will show you what you need to pay and how much more money you need to make payments.
- Second, try selling items you don’t use anymore on Letgo or eBay. You could see a multitude of things like retro or vintage t-shirts, Air Jordans, or even Gibson guitars.
- Another idea is to ask for an extended payment plan. If you break up your payments into smaller parts paying off your bills will be a lot easier. Go to your payday loan lender and ask to re-negotiate terms.
- Finally, you could seek payday loan debt assistance. According to the Federal Trade Commission, “Many universities, military bases, credit unions, housing authorities, and branches of the U.S. Cooperative Extension Service operate nonprofit credit counseling programs.” This counseling can help you evaluate your debt and come up with advice and a plan to tackle your debt.
If you chose to apply for a payday loan make sure the decision is ideal for you and your situation. Payday loans can be helpful to you as long as you have the knowledge and a good plan to pay them off.