The best way to pay off payday loans is to avoid them in the first place. This sounds like common sense, but often people get themselves into this situation.
The most important reason is that these payday loans are just a side business of the payday loan lending companies. These lending companies make a killing, usually taking a percentage of the fee that you pay, and the interest that you pay.
If you get in a hurry and pay the payday loans on time, then the payday loan lending companies will get paid – they get to keep their cut. That’s how it works.
Don’t think for a minute that this is anything other than greed from the lenders to put your own conscience in the palm of your hand. It’s easy money for them, and it’s hard money for you.
I know this because that’s how I got into the mess of payday loans that I’m in now. I ended up owing more than $1000 in payday loans, plus the fees that I had to pay.
Then you can avoid them and save money.
One of the top tips that will help you avoid payday loans completely is to find out how much of your income goes toward paying interest. See if you have any extra money coming in.
Many people just roll over a credit card, or some other account into the loan with the highest interest rate. They don’t even realize that the amount of the loan is an indication of the amount of money that you actually earn.
There is one exception to this, and that is when you know exactly how much you want to pay each month toward paying off payday loans. Find out your gross income, and then work that figure into the loan amount.
In short, if you want to save money when you pay off payday loans, find out what you really want to pay toward the loan. And if you know how much you’re spending, then don’t pay the payday loans at all.
Remember, the best way to pay off payday loans is to not take them at all. Make sure that you stick to the budget that you create, and you will be free of them forever.