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Getting Rid of Your Payday Loans

Getting Rid of Your Payday Loans

The payday loan cycle is a horrible thing to get trapped in and unfortunately every year hundreds of desperate Canadians find themselves stuck with no real solution in sight. The story is almost always the same when it comes to getting stuck in the payday loan cycle: A financial emergency appears out of nowhere and there isn’t any cash to cover it. When you’re short on time and cash more often than not a payday loan can seem like the perfect solution, but once the emergency has been dealt with, you’re stuck with a payday loan that needs to be paid off as soon as possible. All of a sudden you need to get a second payday loan just so you can pay off your first payday loan, this is where the cycle begins and if you’re not carful the fees, interest and other random charges will start to add up and you’ll be forced to continue to get new payday loans to pay off old ones.

This is an all too familiar situation and we want it to stop now. Payday lenders prey upon people just like you who find themselves in a desperate financial situation, so if you feel trapped by your debts or like you’ve lost control of your finances because of payday loans, we want to help you:

  • Stop the payday loan cycle
  • Get back on track
  • Create a plan and a budget
  • Explore your options
  • Offer advice on debt consolidation
  • Avoid bankruptcy if possible
  • Save you thousands on interest
  • Regain control of your money and your life

How to Pay off Payday Loans

Paying off your payday loans is not impossible but it will take a lot of hard work and time. Everyone’s situation is different, but if you follow the steps below we know that you can take back your life, get rid of your payday loan debt and break the cycle.

Step 1: Regroup

We want you to stop, don’t panic and regroup. We understand that realizing your payday loan debt has gotten out of control is a scary thing but you need a clear mind to plan your attack. Thousands of Canadians have been in the exact positions you’re in now so don’t beat yourself up about it.

Step 2: Calculate

Now is the time to figure out exactly how much you owe. Find all your paper work and payday loan documents and add them up, knowing the exact amount you owe will give you the motivation you need to work hard to pay if off.

Step 3: Pay off

You need to pay off as much as you can, as soon as you can. Payday loans come with seriously high interest rates, so the sooner you pay them off the better. Obviously you’ll have to constantly be working on this step, but it’s very important that you start working on it right away.

Step 4: Earn More Money

Easier said than done, we know. But if you’re committed to paying off your debts and getting out of the payday loan cycle you’ll be more motivated to do what needs to be done. Find a second job, pick up some extra hours on the weekend or start selling a few items from around your home. Allocate every last extra dollar you have to pay off your payday loans, getting out of the cycle as soon as possible is your number one goal.

Step 5: Find Alternative Loan Options

So the reason you find yourself stuck in the payday loan cycle is probably because you needed a loan really quick to cover an unexpected expense. Unfortunately a payday loan is the quickest way to get the cash you need, that’s why so many people end up stuck in the cycle. What you need to do is figure out a better alternative. Short term instalment loans from private lenders are almost always a significantly better option than payday loans. You could also consider asking a friend or family member for a loan next time there’s an emergency, we understand that this is an awkward situation but it’s so much better than being stuck in the payday loan cycle.

Step 6: Consider Debt Consolidation

If your payday loan debt is extremely high then you might want to consider debt consolidation. You’ll work with a company that will gather together all your debts and you’ll only need to make one affordable monthly payment. Debt consolidation companies still charge interest but it’s nowhere near as high as payday lenders. Debt consolidation is a good option is because it can alleviate the stress associated with dealing with payday lenders.

Step 7: Set a Budget and Stick to it

Cut back your expenses as much as possible create a new budget based on debt repayment and stick to it. These three steps are extremely important as they are the key to getting out of the payday loan cycle. It’s going to be hard and it will take a long time, but we guarantee that it will all be worth it in the end once you’ve broken the payday loan cycle and can say that you’re officially debt free.

Take Back Your Life Today!

Getting out of the payday loan cycle once and for all will be the greatest feeling so start working towards it today. For more information on payday loans and how payday lender prey upon desperate Canadians check out these other articles:

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Posted by in Loans
Caitlin graduated from Dawson College in 2009 and completed her Art History degree from Concordia University in 2013. She started working as a freelance writer for Loans Canada right after University, eventually working her way up to Chief Content Editor. Her work has led to a large expansion of the company’s content department and she manages a staff of talented writers who are passionate about educating Canadian consumers about credit, debt, and all things personal finance. With over five ...


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