The online payday loan managed to help you out of your financial emergency. Now you are feeling another emergency brewing without any type of respite. I guess that is the definition of emergency cost; no planning, no budgeting, no breather in between money demands.
Steps to take which will help get you out from an online payday loan gone badly.
- Breathe! There is no reason to panic if you are not able to recoup as planned. It does happen, so learn from your mistake and prevent it from happening a second time.
- If you don’t have money to cover your first payment, call the company and let them know! A good company will let you reschedule your payment or at least allow you to pay something towards the fees.
- Take a look at how much you owe and how much you can afford to pay each pay period. Remember that you will be charged interest each new pay period you set up so those costs will need to be considered. Be honest to yourself to the reality of how much can be paid each paycheck towards the loan.
- Use any extra money you have each pay period to pay more towards your online payday loan balance. Lowering the total balance will help to decrease the interest fees and shorten the duration of the loan.
- Inquire about a payment plan. If you have a trusted relationship with the company, they may make that a workable option for you. It pays to be a good customer.
- Make a budget so you can stick to this plan. Add this loan payment to your list of bills each month. See where you can cut back in order to increase your payments. Remind yourself your cutbacks are temporary; it makes it easier to give up unnecessary spending.
- Raise some extra money. Hold a garage sale or see if you can work overtime. Do you have a jar of coins you can roll? You would be surprised how fast small amounts of money can add up.
- Cut your monthly expenses. Can you give up movie channels for a month or two? Groceries are a great area to find room for savings. Can you lower your cell phone or insurance bill? Any money you can save, apply towards your loan.
- Once you have that online payday loan paid off, keep doing what you are doing for a while longer and start up a savings account. Build as quickly as you can since emergency costs do not have schedules. Once you feel you have enough saved up, you can loosen up your budget a bit. Keep money going towards the savings each month. If you are real determined, keep the budget tight and work on paying a different creditor off.
After you have a good amount in your savings, you will no longer have to worry about emergency costs. Be strict with yourself though. Label that money as emergency only and go back into strict budget mode to pay it back quickly. Taking a loan out from yourself is the least expensive way to solve small financial troubles, but you will want to repay yourself creating your own incentive. Treat yourself to something special once your savings has been repaid. Promising you a treat is a much nicer incentive than the fear of high interest rates.
