Apayday loancan offer a quick reprieve from unexpected expenses or temporary tough luck.
If youre stuck in that loop, we have advice on getting out and getting some payday loan relief.
Our team has compiled alist of creative waysyou can fatten your bank account this week.
Find out how a debt consolidation loanimpacts your credit score.
This is a long list, so dont get overwhelmed.
Well keep it updated as offers changes or expire.
The average repeat borrower pays$458in fees on top of their principal over the course of a year.
And when youre that far behind, its hard to get ahead.
Companies shouldnt be allowed to peddle these products.
If this sounds familiar, read on for practical tips on how to get payday loan debt relief.
Work With a Credit Counseling Service
Facing this debt by yourself is hard.
A trained credit counselor can help.
Credit counselingorganizations are usually nonprofit groups staffed with certified financial counselors.
The credit counseling agency then makes monthly payments to each of your creditors for you.
Some states require payday lenders to permit extended repayment plans but lawsdovary by state.
Your lender may have the right to charge you a fee to sign up for a repayment plan.
A credit counselor can help determine if you qualify and get the repayment process started.
Debt consolidation typically groups multiple payday loans together into one big loan with a lower interest rate.
The idea is to help you break the cycle of re-borrowing high-interest debt.
Payday loans often come with sky-high interest rates, as much as 300% to 400%.
In contrast, personal loan interest rates typically range from 16% to a maximum of 35%.
Dont qualify for a traditional personal loan?
Consider getting a payday alternative loan.
These short-term loans are available fromlow-income credit unionsand dont require a credit check to qualify.
You must belong to a credit union for 30 days before you might qualify for payday alternative loans.
You may also need to pay an program fee of up to $20.
Lets say you owe $1,000 in payday loans.
Debt settlement company fees often range from 15% to 30% of your debt.
Chapter 7 is the fastest and most common form of bankruptcy.
It erases most unsecured debt, including medical bills, credit card debt and payday loans.
Filing for bankruptcy is a complex process that can take three to six months to complete.
Declaring bankruptcy leaves a mark on your credit report for 10 years.
But you could also stop them.
Use thissample letterfrom the Consumer Financial Protection Bureau.
Let your bank know you revoked authorization for the company to take automatic payments from your account.
The CFPB has a sample letter for that, too.
Your bank may charge you a fee to place a stop payment order.
If it does, it usually ranges from $15 to $35.
Remember: This move wont eliminate your existing payday loan debt.
But revoking authorization on ACH payments will at least stop the company from raiding your bank account every payday.
Other Ways to Eliminate Payday Loan Debt
Climbing out of payday loan debt can feel overwhelming.
But tried-and-true debt elimination strategies can help.
This approach isnt easy it requires hard work, time and discipline.
College students may be able to request help from anemergency financial assistance fund.
Your church or local community groups can also provide temporary help.
If you have any spare time and energy, it might be worth it topick up a side gig.
Rachel Christian is a Certified Educator in Personal Finance and a senior writer for The Penny Hoarder.
Lisa Rowan is a former staff writer.
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