5 Strategies to Help You Avoid Needing Another Payday Loan

loan strategy

Once you’ve gone through the experience of getting a payday loan, you should realize just how expensive it can be. If you want to avoid having this happen again, you might want to try one or all of the following five strategies to avoid needing another payday loan in the future.

  • Look into Credit Cards with No Annual Fees and Low APRs
    Even though you only pay the annual fee once, it still costs you money that you could use to pay off debt or buy necessities. If you are paying an annual fee on your card, call the customer service line and ask if you can have the fee waived. Many credit card companies will do this if you tell them that you’ll have to search for a new card otherwise. While you are asking about this, request a new and lower interest rate. Getting a low APR (annual percentage rate) can make a big difference to your wallet if you regularly carry debt on your account.
  • Redo Your Budget

    Tweaking your weekly budget is one of the best strategies you have for saving money.

    The changes don’t have to be permanent, and that is the beauty of this plan. Once you save up a few extra dollars, you can take another look and see if you want to continue with the changes that you made or incorporate new ones. Even if you are already down to the penny, take another look at your budget and tweak it a little. Options you have to reduce your budget include:

    • Cutting down on eating-out costs: by giving up one meal out each week or not buying beverages
    • Saving on fuel: by walking from one end of the shopping center to the other rather than driving and carpooling
    • Reducing your grocery bill: by not buying sodas and juices since you can drink water from the tap
  • Communicate with Your Creditors
    If you are behind in your bills, contact your creditors and ask if they can waive a late fee that you received or give you an extension on your bill if it comes without a fee. Many creditors will waive a late fee if it is the first offense, but you shouldn’t expect this courtesy if you’ve already received it.
  • Take a Part-Time Job
    While it might not be much, working a few hours a week at a part-time job can help you to save up for an emergency. Even at minimum wage, you should be able to put away $100 a month if you work an extra five hours on the weekend or at nights. This doesn’t have to be a permanent strategy, but it is one that provides an immediate influx of cash.
  • Look into Overdraft Protection for Your Checking Account
    Although this option often comes with a price tag, it is worth it if this is where you lose a lot of money. Overdraft protection helps to keep you from digging yourself into a huge pile of debt. Just make sure that you understand all of the terms surrounding this decision.

If all else fails and you find that you need a loan to get out of a tough spot consider an installment loan. Many payday lenders are now offering installment loans too, the difference is the payday loan must be paid back in a shorter time frame than an installment loan. An installment loan may give you the time you need to pay back the loan and get your finances in order.



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  • Jared M Crain says:

    I have tried so many offers and got turned down so I feel that applying again. I realize I have to much debt. I am working on a pension plan that will set me free from all short term. The only reason I need some quick money to prevent my daughters foreclosure. I ask if I should quit beating a dead horse and give up for getting. You are in this business and I would appreciate your advice.

  • mbnightrain says:

    I’d like to get a small loan to start building my credit. I hear that this is the best way to re-establish myself as credit worthy.

  • Raymond Hayward says:

    I need enough to pay off a lot of small loans so I can have one payment

  • Dorothy Mitchell says:

    I am in need of a installment loan to get out of a tough spot I have gotten into because my husband passed away in march 2009, and I retired in 2011, my bills got heavier because of my medicine and dr. co-pays so I got some payday loans, living cheaper and finding ways to make more money isn’t always the answer. Wish it was!

  • Tina says:

    I wish there was a way to get an installment loan with bad credit so I can get things paid off and only have one payment a month to get back on track. I’m in the process of finding a better paying job and a part time job to take care of this, but I’m in a difficult position right now. I don’t want any more pay day loans. I can afford an installment loan, especially once I get everything taken care of. Family can’t help unfortunately.

Payday Consumer Notice:


The APR of a payday loan varies in each state and depends on the lender, the advance amount, fees and terms of the transaction. The APR in our network of lenders can range from 265.36% to more than 700% on 14 day terms.

Implications of non-payment

Implications of non-payment vary from lender to lender and by state regulations. If you are unable to repay your loan you may have one or all of the consequences listed below depending upon the terms of your lender. Fees may include but are not limited to: insufficient fund fees, administrative fees, late fees, non-payment fees, court costs and legal fees.

Collection Practices, Credit Score Impact

Payday Loans are due and payable in full in one payment at the end of the loan term, unless the Lender offers renewals or other repayment options. Make sure to review the terms and conditions of your lender if you fail to pay on time.

  • Late payments of loans may result in additional fees or collection activities, or both. Each Lender has their own terms and conditions, please review their policies for further information.
  • Non-payment of credit could result in collection activities and your account could be turned over to a collection agency. Each Lender has their own terms and conditions, please review their policies for further information.
  • Failure to pay your loan on time could result in your lender reporting the delinquency to a credit reporting agency. This could result in the lowering of your credit score which could make borrowing more expensive in the future.

Renewal Policy

Renewal policies vary not only by lender but also by state regulations. Every Lender has their own renewal policy, which may differ from Lender to Lender. Renewal fees vary by lender. Please review your state regulations and you lender's renewal policy, terms and conditions.