How To Pay Your Bills With A Payday Loan – The Easy Way
There is a wide variety of alternatives available for short-term and medium-term loans in duration. There’s a chance that some of these offer reasonable interest rates or service costs. Families who are having trouble paying their bills, rent, or other charges may seek the assistance of a payday loan company.
Types of Payday Loans You Can Use for Paying Bills
Personal Loans Payday Loans
Although the interest rate may not be the lowest, they are often better than using a cash advance or credit card.
Peer to Peer or Social Lending
This kind of lending takes place between ordinary people and does not need the participation of conventional financial institutions. Persons who need financial assistance borrow money from ordinary investors or individual people. This is a novel concept. Compared to the interest rate you would get from a bank, the rate of interest you pay on loan might be much cheaper.
Salary Advance Loans From Credit Union
Members are the only ones who can access these monies. The funds are a relatively recent innovation that provides a more cost-effective alternative to cash.
Stretch Pay Loans With Low-Interest Rates
This product is an additional one that has low rates of interest and is made accessible by smaller regional banks and credit unions that are not for profit. It comes with a plethora of valuable benefits. These loans may be used for unexpected costs as well as regular expenditures.
Credit Union Financing Options
Many credit unions located around the United States welcome members of the general public. Customers have access to loans for various purposes, including assistance in paying rent or for automobile repairs.
No Collateral Signature Loans
People unwilling to make a long-term commitment may benefit from the loans. If you are seeking a source of finance that does not need security but has a higher interest rate, a loan secured by your signature might be a viable choice for you to consider.
Churches Can Provide Emergency Loans
Local and national faith-based groups may be able to provide financial assistance in times of crisis. The dollar amount provided by churches for financial aid is usually minimal. They may offer financial assistance, but not just money.
Most universities will offer emergency assistance for students enrolled in their programs. The interest rate on the cash will be meager.
Home Equity Loans
The loan can help you pay bills. There are some advantages, such as tax breaks. However, there are disadvantages (home is collateral). Only property-owning families can apply. Could you find out more about how to use it?
Auto or Vehicle Title Loans
People can borrow money against their vehicle, truck, or motorcycle. Both payday lenders and non-traditional banks use this product. The borrower’s car is used as collateral for the loan. This can be a quick way to get cash.
Financing With Interest-Free Loans
Several nonprofits provide this service. In most cases, the lender will not charge the borrower any interest on the loan. Money may be given to people even if they are not qualified to receive financial assistance from the government or other organizations.
Association of Jewish or Hebrew Free Loans
They have hundreds of offices located throughout the United States. They will help anyone of any religion or background who wants their assistance. These monies may be used toward the payment of expenses such as rent, deposits, or medicine and the financing of a vehicle that will be utilized for employment.
Federal Employee and Education Assistance Fund
Government employees may acquire zero percent interest loans. The only people eligible to participate in this program are those who work in a civilian capacity for the federal government. However, those who work in the postal service are also qualified. Military families and veterans searching for alternatives to pricey payday lenders may be guided to the appropriate resources they so want.
Pawn Shop Loans
This choice is available to the borrower if they have collateral in their possession. The consumer will get the cash when the broker has completed the evaluation of the item. The funds will be repaid via short-term loans, which, in comparison to many other products, have a lower average interest rate.
What To Do if You Can’t Pay Back Your Payday Loan?
If you’re having trouble paying back a payday, the worst thing you can do is ignore the problem.
Here are some things you can do:
Step 1: Get in Touch With Your Payday Lender as Soon as Possible.
They must, by law:
point you to places where you can get free and impartial debt advice
- If you are working on a payment plan with a debt counselor or on your own, the debt collection will be put on hold for a reasonable amount of time.
- Treat you fairly and with care, giving you enough time to pay back the loan. This could include stopping the interest and fees.
- not call you, email you, and text you all the time
- If your payments leave you without enough money for food, rent or mortgage, and utility bills, you might temporarily want to accept small token payments.
- Please keep copies of all the emails and letters you send to the lender, and write down what you say when you talk to them on the phone. If they don’t answer and you need to make a complaint, this is proof that you tried to get in touch with them.
Step 2: What To Think About Before Stopping the Automatic Payment.
When you cancel a recurring payment, there is a chance that the company will charge you a canceled direct debit fee.
Before you do anything, you should talk to your bank or lender about ways to keep up with payments. You can also ask what will happen if you decide to cancel and if there will be any fees.
If you still want to cancel, you must do so at least one day before the due date for repayment. Make sure you tell your lender you’ve done so.
Write down the date and time you told your bank to stop the payment from happening again.
If money from your account goes to the lender after this date, you should talk to your bank about it. By law, the bank has to give you your money back.
It’s good to send a letter to your bank after calling them.
Step Three: Don’t Renew Your Loan.
Your payday lender may suggest that you “roll over” your loan for another month. This is not a good plan.
You have to pay more fees and interest, so you owe more money.
Instead, get advice on dealing with your debt and think about your options.
Before they let you roll over your loan, payday lenders must tell you how to get free help with your debt.
Step 4: Get Free Debt Assistance.
The impartial consultant will help you bring your debts under control and may be able to negotiate with the lender on your behalf.
Tell your lender when you hire a debt counselor. Letters should follow phone calls.
After this, your lender must allow you time to develop a repayment plan before engaging debt collectors.
Please email that they cease contacting you while working with a debt adviser.