These tips can help you conquer the payday loan cycle.

If you feel trapped in the payday loan cycle, you have options available to help end it. You don’t have to be stuck in debt for the rest of your life. Try working some of these strategies into your life to help end the payday loan cycle and get on the road to a strong financial future.  

Ways to Help End the Payday Loan Cycle

November 14, 2016

These tips can help you get out of the payday loan cycle.

If you feel trapped in the payday loan cycle, you have options available to help end it. You don’t have to be stuck in debt for the rest of your life. Try working some of these strategies into your life to help end the payday loan cycle and get on the road to a strong financial future.


Create a Budget



This needs to be one of the first steps to take when working on getting finances under control. A budget will tell you how much money you have and where it needs to go, helping you plan paychecks ahead of time. A budget will give you a realistic scope on your bills while helping you get a grasp on things that are wants versus needs. Try to cut out as many wants as possible until all the needs can be taken care of.


Use Automatic Payment Plans



This is a great way to avoid late fees or increasing interest. If an account allows, set it up to automatically pull payments from your checking account. If you’ve made a budget, you should be able to factor how much money you have throughout the month to avoid over drafting. You’d be amazed how many bills allow you to set automatic payments: car insurance, credit cards, and cell phones are just a few of them. You can even use the Bill Pay feature inside Online Banking.


Consolidate Debt



If you are feeling crushed under debts with high interest rates, you may want to look into consolidating your debt. This is a process where you combine the debt from multiple accounts into one with a lower interest rate. This can help you minimize how many bills you need to keep track of and help lower the amount of interest you accrue over time. One way to consolidate is through a balance transfer, taking the balance from a high-interest credit card and shifting it to one with a lower interest rate.


Don’t be Afraid to Ask for Help



When you feel trapped in debt, don’t feel like you have to go it alone. Reach out to friends and family for support and contact your financial institution to see if they have financial education or debt management courses. Research your available options; you may find that there are loan options with much lower interest rates than the traditional Payday Loan companies. Finding support and using your resources is an important step to take when working on minimizing debt.


Resources are out there to help you get through tough times. It may feel like the payday loan cycle will never end, but with the right resources and a plan, you can begin the journey towards a brighter financial future.

Find helpful money management resources, like videos, toolkits, financial counselors, and checklists, by visiting the BALANCE Financial Fitness Program

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