Non-bank loans, called payday loans, are gaining in popularity year by year. Nothing unusual. Easy and quick cash tempts millions of people. Unfortunately, repayment is not always as easy as getting finance.
With several loans, the monthly installment is too high, and many people pay one payday loan with the other, falling into a vortex of debt. How do you get out of the payday loans loop and pay off all your obligations?
Need help to combine payday loans into one?
Borrowing several loans may result in your monthly income being insufficient to cover your liabilities. This results in falling into a spiral of debts. The worst solution is to take another loan to pay back the previous one. How do you get out of the payday loans loop so that you don’t get into more debt?
First, analyze your income and expenses. Write down your income on the card, and then make a list of all your obligations to loan companies and daily expenses. Then think about where you can look for savings. Once you know how much you can save per month, plan your activities.
Can you pay your payday loans? Maybe your family will help you? You can also think about using the https://www.paydayloanhelpers.com/payday-loan-consolidation/ site for a payday loan consolidation.
How to avoid a spiral of debt?
Granting financing by loan companies is comfortable and definitely easier than taking a loan from a bank. Minimal formalities and a quick decision mean that borrowers are increasingly choosing products offered by loan companies, thus giving up a bank loan.
Unfortunately, too simple requirements mean that many people choose them too hastily, without thinking and analyzing their income and expenses. If you take several, the value of your commitments may exceed your repayment options and be more than your income.
Debtors start paying back one payday loan, taking the other, thus creating debt loops. It has a very negative impact on every aspect of the debtor’s life. How to avoid a spiral of debt? Primarily:
- do not take a payday loan to pay off the previous one,
- avoid payday loans without BIK,
- Don’t take loans that you can’t pay back
- do not take out loans with too short repayment terms,
- don’t finance your daily expenses with payday loans, don’t accumulate too much.
Also, always consider taking out the loan and your income exactly. Set the maximum amount you can spend on monthly installments.
Where to look for help with the debt spiral?
Exiting the payday loans loop is a lengthy and difficult process for the debtor. In this situation, it is worth using the help:
- Families – Talk to your family about your debt. Ask if they can lend you money.
- Financial advisor – An independent financial advisor analyzes all your income and expenses, looking for a place for savings. It shows how to exit the payday loans loop without having to take another loan.