When you are in need of money, a payday loan seems like a great idea. However, many borrowers often find that the interest is so high they cannot afford to pay it off in time.
So, what are you supposed to do when the same bills are due the following month and you still have this massive payday loan payment to make?
One of the main drawbacks of taking out a payday loan is the short period in which it needs to be paid back. If payments cannot be made, at the very least, the interest needs to be paid so as not to go into default.
However, the borrower often finds that if they pay the loan, they are now short on household bills the following month. Instead of getting out of debt, they find themselves in even deeper.
By just defaulting on the loan, you would risk your credit rating. Of course, this means getting any type of a loan in the future would be all but out of the question until the black mark was removed from the credit report.
That being said, defaulting should not be an option. Having something such as this on your credit report for seven or more years needs to be avoided at all costs.
An alternative that most people do not consider is talking to their current creditors in an effort to literally skip a month of payments.
It is not uncommon for credit card companies to offers a one-time courtesy of being able to skip a single payment. Some of them may also lower the minimum payment for one month without penalty.
Another possibility is in changing the due date so it puts the bill off for a few weeks until you financially recover from making the payday loan payment.
You will not know until you ask, and if you can get just one or two creditors to extend this courtesy, you may find that you are able to crawl out from under this debt and get your finances back on track.