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How can I get out of the payday loan hole?

jrvjeo asked:

I have fallen into this payday loan hole, and I can seem to get myself out. What would be the best solution to pay them off fast, if I don’t have the money. Should I try and get a personal loan?
Asked on: 2008-10-28 14:57:16

3 Comments

  1. Whatever you do, dont follow my example. I ended up with 3 payday loans. I paid the minimum for as long as I could. Now all of them are past due and there is no way, short a miracle, that I will be able to pay them back. I will probably end up going Chapter 7. My lesson learned is that payday loans are ok for very small amounts.

  2. bbarajas909 says:

    A personal loan might be the answer. Sometimes people use mortgage loans as well to bring them selves current w/ debt. However you must realize that its much easier to fall in to the trap then it is to get out. So be sure whatever avenue you take, dont fall in to the same habits.

  3. Gillian G says:

    The first thing you must do is to get a grip on your spending. Payday loans should only be used for a dire emergency. If you get a payday loan before you’ve paid back a previous one you’re falling into a debt trap.

    OK – so what do you do? Take all your credit cards except for the one with the least amount of credit left and cut them up. It doesn’t matter if you owe money on them: you’ll still have to repay them but at least you won’t add to your debt. Use the one left only if you absolutely have to. Leave it at home: use cash for everything. Do it now.

    If you absolutely cannot manage to repay your loans from your salary, then consider debt consolidation. This doesn’t make the debt go away, it just smooths it over a longer period. But you must resolve not to use it as an excuse to get into even more debt because that could land you in bankruptcy.

    You say you’re in a hole. You know what they say? When you’re in a hole, stop digging!

    Good luck.

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