How To Get Debt Relief for Payday Loans Without Going Into More Debt

Paying off high-interest debt requires a proactive approach. By taking the time to calculate your debt and understand your options, you will be able to make educated decisions that will work to your benefit. Don't be afraid to ask for help, lower rates or a payment plan.

Instructions

Calculate Your Debt and Research Your Options

1

Calculate your total amount of debt, how much interest you are paying, and how much you can reasonably spend per month on your debt without increasing your debt. Use an online debt calculator like BankRate.com (see Resources).

2

Research debt-consolidation companies. Consider major banks, the companies you currently use, and other companies that offer consolidation. Conduct your research by visiting the company's website, calling its offices or visiting one of its storefronts. When researching, compare rates and loan terms. BankRate.com offers a loan repayment calculator (see Resources). This will calculate how much interest you will pay and how long it will take until payoff.

3

Don't be afraid to call companies and ask for them to explain their options. Make sure you understand the different types of percentage rates; this is important when comparing companies, and it can be detrimental to your negotiations if you don't understand the jargon.

Contact Your Payday Loan Company

4

Negotiate with the company for a reduced rate. These companies want you to pay off your loan, so let them know that you want to honor your agreement but are struggling. It is best to contact the company before you default; they will be more likely to help you out because you are being proactive. This is also relevant for any type of debt you have, including credit cards. Most of the time, all you have to do is ask, and you can have a lower rate, increased credit line or a different payment date.

5

Ask if the company offers consolidation plans. Some companies may not, but if they do, you may be able to put all of your debts together to have one payment per month, a lower rate and a new pay schedule that may offer a lower payment overall.

6

Also compare their consolidation plans to your research; you may be able to negotiate a better offer. Loan companies prefer payment plans over payoffs because they make them more money, so use your research and negotiation skills.