Published on May 18th, 2016 | by FinanceLoophole2
How to get out of payday loan debt
We have worked closely with our specialist debt adviser’s to provide you with help on how to get out of payday loan debt as quickly as possible.
Although the payday loan regulator (FCA) has curbed some of the worst excesses of the payday loan companies we are still seeing a growing number of people trying to get out of payday loan debt.
If you have a payday loan debt that you cannot pay – remember that you are not alone and there is plenty of help out there. We have listed below the things to do which will speed you along the road to financial recovery.
How to get out of payday loan debt
You can get payday loan debt help from companies who will manage your debt problems on your behalf – they deal directly with the payday company so that you do not have to. This can be a great relief to many and will help to cut the stress of dealing with your payday loan company. They will also make sure you go about clearing the debt as effectively and affordably as possible.
While these debt resolution companies generally offer a good service, the difficult thing is to work out which ones are good and won’t rip you off. We have had good feedback about the people at Bright Debt Solutions. They can work directly with you to tell you how to get out of payday loan debt if you qualify for their help. Find out if you qualify for their help by filling in this help me out of debt form and see if they can rid you of your payday debts.
For those who favour a more self service approach to their payday loan debt we have listed the key stages on how to get out of payday loan debt as quickly as possible. It is important to address the issue quickly.
Key stages – how to get out of payday loan debt
Stop borrowing too much
This is particularly true if you keep getting into debt with a payday loan – you need to break the cycle. It does seem obvious but not everyone appreciates that the getting into a cycle of boom and bust borrowing will have a big impact on your finances as well as your stress levels.
Payday loans can be very useful for that unexpected bill like a car repair. But don’t get a payday loan every month as this shows stress on your finances – you need to cut back a little on your spending instead or you will get deeper into debt.
Payday loans can be very useful for that unexpected bill
Cancel CPA payday loan payments
When you applied for your payday loan you provided authority for your payday lender to set up what is called a continuous payment authority (CPA). This is how most payday loan companies will take payments out of your bank directly. If you are unable to make the repayment amounts of your payday loan under the CPA you are within your rights to cancel the CPA.
To do this just contact your bank and stop them taking the money – we have a CPA stop automatic bank paymenst template letter for you to use to send to your loan company to get them to stop taking the money.If your bank refuses to cancel the CPA you can make an official complaint and they have to refund the money paid in the CPA once you have asked them to cancel it.
Repay only what you can afford
Most people think that they have to repay the money they owe to their payday loan company. This is true to a certain extent – but you do not have to pay back more than you can afford.
You can work out how much this is by simply sitting down and working out how much you need to pay for other things that you cannot do without – your priority payments. These are things like rent and bills (including any arrears you have). You can then make sure that the most important bills are being paid.
Adjust your lifestyle
Work through your spending and see where you could be making savings. Most people just spend what they have in the bank – this can come unstuck when you run out of money.
It is a good idea to note down everything you spend including all of your bills over the course of a month, you may be horrified that you spend so much on eating takeaways, going out etc.
Try and spot things you could perhaps cut back on. Maybe stop being a slave to your brand shopping at least for a while. You may be impressed by what you buy for much less money just by avoiding branded products.
No more payday loans!
Once you have worked all that out you should find it possible to start living without the need to continuously fall back onto payday loans to pay your bills.
Once you have done that you can get back on the road to financial stability and start saving money for those luxury items you want like a holiday ion the sun.
Our top debt tips are:-
- Don’t panic – as long as you get help quickly it won’t be a problem for you
- Don’t ignore it – don’t put your head in the sand hoping it will go away – it won’t and it is going to get considerably worse for you in the long-run as your debt builds up
Some of the payday loan debt help out there is free so it need not be difficult or expensive to sort out your finances so that your payday loan can be paid off swiftly.
How to get out of payday loan debt with a specific lender
Free advice on how to get out of payday loan debt
There are some places you can go that offer you free advice on debt. Some people think that because they are offering a free service they do not give a high quality service like that offered by a professional debt management company. While this used to be the case, the charitable services are catching up quickly though there are non that specialise in payday loan debt. The top providers of free debt advice are listed below.
A private charity regulated by the FCA to provide free debt advice
- Money Advice Service
Set up by the government and operated by a private company to offer free debt advice
- Christian debt help
They offer free debt advice primarily for people in the Christian religion but will deal with anyone with debt issues.