Due to the convenience and ease of getting access to money, payday loans are financing options that are gradually gaining momentum. As the name suggests, the payday loans are lines of credit that requires being repaid on the day you receive your next paycheck and this means that the repayment term of the payday loans is maximum 1 month. It is a necessity that one has to be employed and should have a checking account in order to qualify for a payday loan as this is the only document that is checked by the lenders before lending you the loan amount. But what if you lose your job after taking out several payday loans? How will you handle the rising high interest debt which will multiply due to accumulated interest rates and late fees? Should you seek help of the payday loan debt relief services? But when you don’t have enough money to repay the loans, from where will you arrange money to pay the debt relief companies. direct lender Read on the concerns of the article to know how you may handle debt during unemployment.
Getting help from a non-profit credit counseling agency
When it comes to getting out of payday loans online debt during unemployment, a non-profit credit counseling agency might just provide you with answers to your questions. As the non-profit firms are funded by the local credit unions and the business organizations, such companies don’t pressurize their clients with hefty fees for the services. They will formulate a budget for you, teach you effective personal finance management techniques and will help you get back on track. However, you should always ensure that the non-profit credit counselor checks and analyzes your financial state before advising you. The non-profit credit counselor will even sign you up with a DMP or a debt management program so that you can repay your debts through easy and affordable monthly installments. You have to make a single outgoing payment to the credit counselor and he will disburse them off to your payday loan lenders.
Self help can also be the best help when you’re unemployed
Yes, when you’re unemployed and you’re living a tough life, you can also help yourself put an end to all your payday loan debt woes. Craft a budget, withdraw money from your savings account and negotiate with your payday loan lenders. Tell them about the financial hardship that is barring you from making timely payments to your lenders. If they understand the situation that you’re going through, they will put you on a hardship plan through which you can make smaller payments and gradually get back on the right financial track. Don’t make the mistake of using your credit cards to repay your payday loans as this will lead to a greater mess.
So, when you’re drowning in a sea of payday loan debt and you don’t have enough funds to repay the amount, you may take resort to the above mentioned options. Whichever option you choose, ensure saving money and living a life within your means.