Beautifying Your Financial Picture

4 Smart Ways To Pay Off Your Payday Loan Fast

by Darryl Nguyen

Do you need to perform emergency repairs on your vehicle or pay for a doctor or dentist appointment? A payday loan can get you out of a tight financial situation in less than an hour's time. You just need to fill out the required paperwork and the money is yours for the noted loan period. You must pay off the loan on the given date to avoid fees and charges that can drive up the rate. Unfortunately, that can be difficult to do while maintaining your monthly budget. Thankfully, you can use one of the following smart moves to pay off your payday loan quickly.  

Strict Budgeting

Cutting out small purchases helps you avoid nickel and diming your money to death. You might be surprised at how much money accumulates after cutting daily coffee, movie rentals and scratch tickets out of your monthly budget. You can apply those savings to your payday loan payment to quickly resolve your debt.

Review your budget with a tracking program to identify areas that you could minimize or eliminate for a short while. Consider cutting your phone or cable plan back a bit to save on that monthly payment as well. After you pay off the payday loan, you may wish to simply divert the savings straight into a bank account rather than apply them to those eliminated purchases or reduced plans.  

Peer To Peer Lending

Although a payday loan can save your finances in a moment's notice, you may need to consider a longer-term plan to recover from the disruption. You may not have the extra funds to apply to your payday loan amount without seriously cutting into your monthly budget. However, you do not want to default or you could rack up fees, including interest on the total amount of the loan.

Consider sourcing a peer-to-peer loan that offers a longer payment plan to quickly satisfy your debt to the payday loan organization. Doing so will enable you to free up the payday loan amount for any other emergencies that occur. Make steady payments to the peer-to-peer loan network to satisfy that loan without breaking the bank.

Crowdfunding Project

If you have a skill you can monetize, consider doing so by setting up a crowdfunding project. You can market your skill by making a product the general public will love. As people buy into your new product, the crowdfunded account will grow. You will need to apply the bulk of the proceeds to making and circulating the project. However, you can apply a portion of the profits to your payday loan to clear up that debt by the given date.

 From there, continue marketing your new product to create a cushion you can rely on in the future. Consider how else you can expand your line of products to create a full side business that supplements your income for the foreseeable future.

Completing Side Work

If you do not want to start a whole new company, think about just performing odd jobs that give your cash flow a nice buffer. You can perform small home repairs, dog walking, home sitting or artistic projects that give you enough money to pay off your payday loan.

If you create a nice client base, you can complete regular odd jobs that help you create a decently sized savings account. The savings account can help you pay for emergency needs on its own or when coupled with funds for a payday loan.

Finding Your Solution

Paying off your payday loan in a timely manner opens up those funds for later use. Payday loans from a place like Money 4 You can act as an emergency buffer that complements your savings fund. Payday loans are also great to use while you are building up the recommended three- to six-month savings fund with small bi-monthly deposits. You can continue the methods above to help buffer your savings fund to save payday loans for serious financial issues that crop up.