The chances are good that if you are trying to find a payday loan lender, it can be safely stated that there are financial problems lurking on the horizon. I bet it is also safe to say that if you are asking yourself whether or not a certain debt may be bad for your credit, you already know the answer deep down inside. As much as you don’t want to admit that spending beyond your means will hurt your credit, you know that without the money to pay it off, it will only add to your debt.
Many people also take time to think about how to repair damage to their credit. Lots of time and energy is placed on repairing credit rather than trying to prevent damage in the first place.
How do payday loan lenders help credit?
The loan amounts are small and the payback is usually within just a few short weeks. These lenders will most likely not be able to help out the current debt situation at all. They are more often used for that short-term loan to help in a pinch when there is an unexpected pile-up of bills. This often happens when a car breaks down or an extra trip to a medical office needs to be paid right away and takes money out of your account which was earmarked for other bills.
Juggling the balance between paying debt down and continuing function from paycheck to paycheck without rebuilding debt is essential. Is it doable? Yes it is, but there will need to be some major focus placed on personal finances. If you are living paycheck to paycheck, using a payday loan lender may not be the best decision.
- Take the plunge and figure out how much you owe in debt and to whom.
- Rework your budget to fit it all in.
- Squeeze in a place to save money.
- Find areas where you can cut back.
- Make your plan and stick to it.
Place your focus on not making any more debt…while you pay down the current debt…while you work at building a savings account. It is doable, but preventing debt in the first place is a much easier task.
Payday loan lenders are not going to check your credit history, they are not going to ask your credit score and they are not going to let you keep the debt out without paying extra in fees. The low cost payday loan which was initially taken out to prevent fees becomes a heavy laden addition to your debt.
If the debt is huge, you may want to consider:
- credit counseling
- debt consolidation
- equity loan for self-consolidation of debt
- debt settlement
- bankruptcy
Counseling is definitely your best option where you can receive help to not only fix your financial problem but also learn some skills to prevent the problem from reoccurring. Without the knowledge to learn from your mistakes, the other solutions could help current debt but won’t prevent the buildup of new debt.
Spotya! is a payday loan lender who lends responsibly. We want to be able to help people with a quick loan, not add to financial problems.
