Getting a payday loan was a very temporary way to get through the month.But you need to restructure your debt in order to truly fix the problem.
But two weeks pass by fast, and there is no way you can come up with the $150 to pay off the loan. The biggest problem with payday loans is that they are basically interest only loans.
Every time you make a payment, your balance does not go down.
And a low interest rate credit card (like the 9.99% Pen Fed Promise) is a great second line of defense. The best way to never end up with a payday lender again is to make sure that you have two lines of defense set up. The payday loan company will make it easy to just renew – but make sure you add just a little bit extra to each payment to bring that balance down.
In the meantime, make sure that you put something towards your payday loan every time you renew. TAGS: DEBT, Payday loan Magnify Money is an independent, advertising-supported comparison service which receives compensation from some of the financial providers whose offers appear on our site.
The lower your utilization rate, the better your score will be.
We recommend you make one small purchase a month to keep your utilization low and help increase your credit score at a faster rate.In an emergency, you borrow 0, and only have to pay a fee. Fast forward 12 months, and you have paid 0 in fees, and your balance is still 0. This is still a shockingly high interest rate (60%), but the total cost is dramatically less. Because how you borrowed was structured as a loan, and not an advance.You feel incredible relief that you are able to get the necessary cash so quickly. A portion of every payment goes to paying down principal.If you are in a mess with a payday lender, you need to ask yourself a difficult question.If that describes you, than you need to visit a non-profit consumer credit counselor.To provide more complete comparisons, the site features products from our partners as well as institutions which are not advertising partners.