You’re barely making it through the end of the month with enough left over for rent. You’re rolling over payday loans like it’s your job, and with monthly fees that you’re already struggling to pay, you have no idea how you’re going to keep this up.
Chances are, you took out your first payday loan because money was already tight. And now that you’re in over your head in payday loan debt, you’re not sure how in the world to get out without increasing your income. But you have a great job, and you don’t want to quit. Or you’re already working 2 or 3 jobs just to get by, and there’s no way to possibly take on more work. The good news is that you don’t have to.
It’s completely possible to get out of debt without increasing your income. It doesn’t matter how much you make or how much in payday loan debt you actually have. As long as you’re willing to do the work, it’s possible no matter what your financial situation looks like. We’ve watched hundred of people escape the payday loan trap, so today we’re sharing our top tips with you.
Count every penny.
It’s time to create a budget.
If you’re not already using a budget, this should be your very first step. Tracking your money and knowing exactly how much is coming in and how much is going out, as well as where you’re spending all of your money, is so important to getting your finances in order and getting out of debt. Chances are, you’re spending too much money on certain things, like food or clothing or going out, which is leaving you with no money left at the end of each month.
By creating and using a budget, you can find out exactly how much you’re spending on everything – groceries, eating out, clothes, going to the movies, gas, electricity. Then, you can figure out ways to cut back on different expenses.
Unless you make a plan for where your money is going to go, it’s going to go everywhere except towards paying off debt. A budget will help you get and stay on track, save more money, and get out of debt. If you’re not sure where to start, use our step-by-step guide for creating your first budget.
Cut it out.
If it’s not a necessary expense, cut it out.
Rather than increase your income, you can decrease your expenses. Creating a budget first (see tip above) will help you find areas of your expenses where you can cut back. Chances are, you’re overspending because you haven’t been aware of just how much you’re spending. As soon as you know what you’re spending and where it’s going, you’ll be able to find areas where you can drastically cut back.
Start with your monthly food expenses. Many people overspend on groceries and eating out. Going into the grocery story without a list or a plan is a recipe for disaster. And not planning your meals ahead of time and making time to go grocery shopping can lead to eating out or picking up take-out numerous times a week. Eating out, whether fast food or at a restaurant, adds up. So, start with your groceries. How much can you reduce your grocery spending by? There are a ton of tips online for reducing your grocery spending. So, do a quick search, make a list, and start cutting back. Also, make a decision to cut out restaurant spending altogether, or at least decrease it drastically.
Be sure to consider other areas of your budget where you can cut back or get rid of an expense altogether. A few key areas to consider: cable/tv, going to the movies or other recreational activities, gifts, electricity, travel, car payment.
And if you’re really ready to make a big change, get creative and save big with a spending fast!
Go through your junk drawers.
(and closets) It’s time to sell some stuff!
We collect so much stuff that we rarely stop to ask ourselves how much of it we actually use. When’s the last time you’ve cleaned out your closet? What about your garage? Your attic?
You may be surprised at how much extra money is just laying around your house in unused stuff. Old furniture you’re hanging onto, CDs you haven’t listened to in years, and clothes you’ll never wear again. Closets, drawers, garages – take some time to go through each room in your house. Find things you don’t use anymore and ask yourself if it’s really worth hanging onto. Chances are, it’s not. Get rid of things you haven’t used in months. Clean out clothes you’ve outgrown or don’t wear anymore.
Get creative! Check out this video where we share 10 things you can sell to get out of debt (#10 may surprise you!).
Need more help getting started? Check out our full list of 19 things you can sell to get out of debt.
Consolidate your loans.
Consolidating your loans will turn your multiple monthly payments into one manageable, easy-to-pay monthly payment. Moving from multiple monthly payments, all with varying interest rates and fees, to one, single, combined payment helps reduce the stress of getting out of payday loan debt and makes it easier.
Loan consolidation can also reduce your overall interest rate, as well as decrease (or completely waive) any late fees. So, not only is your payment easier to manage, but your total debt is now manageable. If you’ve been struggling to manage your payments and keep up with the growing interest, payday loan consolidation may be right for you.
You don’t have to increase your income and you’ll have the support of an expert payday loan consolidation team helping you through the entire process. Check out our list of 20 benefits of payday loan consolidation to find out more.
If you’re interested in talking with a payday loan consolidation team to find out more, contact us today!
Stop taking on new debt.
That means no new loans and no more rolling over loans.
If you’re making the decision to get out of debt, you must first commit to not taking on anymore new debt. Taking on more loans and rolling over your current loans continues to add to the pile of debt you’re already struggling with. It makes getting out of debt even more difficult.
So, decide that you’re going to get out of debt. Commit to not taking on any additional debt. Put these tips into practice in your own life. And start the process of getting rid of your payday loans without having to increase your income.
If you’re struggling with payday loan debt and are interested in payday loan consolidation, we can help. Contact us today and find out how we can consolidate your payday loans to get you out of debt fast, without having to increase your income.
Looking for more tips and creative ideas for getting out of payday loan debt? Check out our list of 50 ways to escape that payday loan cycle!