The first time that I had ever taken out a no teletrack payday loan, I was eighteen years old. I was just old enough to even do this and I had no clue that it required a lot of responsibility to even do this. I was unprepared and at one point, I had even let the loans become more than I could handle.
I took the loans out, thinking that it would help me to establish my credit so that I could later go to get me a car that I wanted. I had a job at the time, and I was not thinking about the money that it would cost me to pay these back. I was just happy that I was on my own and able to establish my credit at a young age.
Two years had gone by, and I had defiantly established my credit after paying those loan payments. I knew that I was in trouble when I started thumbing through the help wanted section of the newspaper, looking for a second job. I was only twenty and I had already gotten myself into debt.
At this time, I had three loans taken out and I kept renewing them just so that I could get out of paying them that month. I found out the hard way, that this was no way to go and no way to be.
I worked out a plan after my dad sat me down and had a talk with me about the way that I had let my finances get the best of me.
I read through books, magazines, and on the Internet searching for a way for me to get out of these so that I could get my life back on track. My loans were getting the best of me and I was verily able to pay my rent. I really knew that I was in trouble when I had to borrow money from my dad to pay a 48 hour cut off notice that I had received from the electric company.
I discovered a lot of valuable and informative information to paying off loans and how to get help with them from the loan companies when you are struggling.
These are the lessons that I learned and I hope that you will use them so that you too can get out of the path of those loans.
You should always pay more than the minimum owed. I don’t care if you only pay five dollars more, at least you are paying something. If your monthly payment is $93, then you should round that off to $95. This will help you pay it off quicker, you will be surprised at how that two dollars can add up. Besides, the credit companies love this. It makes it look like you are really making an effort to pay and on your credit report, it will show that you paid more than the balance owed.
Try to pay your monthly payments earlier than what your due date is. If you pay earlier, the credit company will acknowledge this and so will the loan company. The loan company is more than willing to help you out more when you show them that you are trying to pay them off.
As tempting as it may be, don’t renew your loans unless absolutely necessary. When you renew your loan to get part of that money back, you are only digging a deeper hole. Loan companies will try to get you to renew your loans so that you will have to pay back more. When you renew a loan, your balance may go up along with the Interest rate. I renewed a loan just so that I wouldn’t have to pay any money that month, I ended up paying a lot more money for doing this and it kept me debt even longer.
If your loans are all due around the same time, then call the loan companies and switch due dates. If you get paid weekly, you should try to pay a loan each week so that it still leaves you with one free week to pay your rent and your bills can be spread out to even the amount of money you have to spend each week. This is a smart way to get your loans paid off and you can do this with any of your bills so that you are not having to come up with every payment at one time.
If you get in a bind and are unable to make a payment, you should call up the loan company at least five days in advance. This will give you plenty of time to get it documented into your account and will also leave room for error encase there is any. Once you set up a different date to pay them, try to stick with it. Most loan companies will work with you so that you can pay them. They really don’t care what is going on in your life, as long as they still get paid. So, make sure to stick to this date so that they will still trust you encase something else comes up in the future.
As much as you hate answering the phone when they call, always do this. Loan companies hate it when people ignore them, especially after several attempts to contact them. I know that it can be annoying but remember, they are going to keep calling you and sending you letters until you reply. This is why it is better to just answer the phone and deal with it. The other reason that it is better to answer the phone, if you talk to them then they are less likely to add any bad reports to your credit history as long as you keep your end of the bargain.
Loans can be a hassle to deal with and I hope that you listen to the things that I have learned.