You were short on cash and applied for a payday loan. Next thing you know you were approved for one loan and keep getting approved. Before long, you’re in more debt than you can manage, you’re unable to make your minimum monthly payments, payday lenders are calling nonstop, and you don’t know what to do.
If you’re living paycheck to paycheck and feel like you’re barely keeping your head above water, it can seem next to impossible to get rid of your payday loan debt. There’s barely enough money to put food on the table every month. How could you possibly begin to find extra money to pay off your loans?
If you’re living paycheck to paycheck, you don’t have to stay stuck in the payday loan trap. Here are our top 4 tips for how to consolidate payday loans and get out of debt, even while living from paycheck to paycheck.
Create a Budget
If you’re living paycheck to paycheck and don’t have a budget, there’s a significant chance that you’re spending extra money every month without even noticing it. A budget shows you where your money is going and exactly how much is going where. A budget also allows you to plan so that you know exactly how much you can expect to spend and how much will be left over after all of your bills are paid.
For many people, creating a budget helps them find extra money that they didn’t even realize they had. And any extra money is money that can be put towards getting out of payday loan debt.
Not sure how to create a budget? Check out our guide on how to create and use a monthly budget.
Cut Your Living Expenses
If you’re living paycheck to paycheck, one of the easiest ways to get out of payday loan debt is to cut your current expenses. Then, all of that extra money you would otherwise be spending on rent, groceries, bills, shopping, etc. can go directly towards paying off your loans.
Cut out rent, which is a huge monthly bill, by moving in with family for a short period of time. Get rid of cable or any extras that are not absolute necessities. Most importantly, stop any unnecessary spending. This includes clothes shopping, restaurants, movies, vacations, etc. By eliminating all of these items from your typical monthly spending, you’re able to free up a huge portion of your income to pay off your payday loans.
Find Ways to Increase Your Income
Increasing your income is a great way to get out of payday loan debt. If you’re able to increase your income, you can take all of the additional money you’re making and put it directly towards your loans. You’ll also have the extra income to create a savings fund, so that next time you’re short on cash, you won’t have to turn to payday loans.
Finding extra income is easier than you think. Find a side hustle in addition to your current job. Pick up a part-time job in your spare time: late nights delivering pizza, dog walking during the day, early mornings at a coffee shop. There are tons of options if you’re willing to look. If you can’t find any additional time to take on extra work, sell stuff! Your house is full of things you can find or make to sell. Check out our list of 19 Things You Can Sell to Get Out of Payday Loan Debt.
Consolidate Your Loans
When you’re trying to manage multiple (or dozens) of loans at once, all with different interest rates and monthly payments, it’s next to impossible to keep track of them all, let alone get out of debt.
No matter your income, payday loan consolidation could be the help you’ve been looking for. Payday loan consolidation reduces your overall interest rate and combines your multiple monthly payments into one, easy to pay monthly payment. Payday loan consolidation can offer you relief from the stress and overwhelm of payday loans. A payday loan consolidation company also has the experience and expertise you need to negotiate interest rates, combine your debts, and make a financial plan to get rid of your payday loans.
If you’re interested in consolidating your loans, contact us today. We’ve worked with hundreds of people to consolidate their loans and help them get rid of their payday loans.
Getting out of the payday loan trap while living paycheck to paycheck is possible. It takes you choosing to make a change (or multiple changes) in your life. If you’re still feeling stuck, contact us today. No matter your income, we can help you find relief from your payday loans and escape the payday loan debt trap.