Although people’s reason for getting payday loans vary, what it mostly comes down to is running out of options. One thing is for certain, if the bill can wait then you should absolutely wait, because payday loans are an extremely expensive way to get your hands on quick cash.
Make sure you explore ALL of your options when it comes to managing your debt. Here are some things that you may consider if you are having trouble with excessive debt:
Borrowing Money from Friends and Family
For some this can be the most difficult option of all. The old saying is “money and friends don’t mix”. Many of you will have learned that lesson the hard way and some of you will learn it, borrowing money off someone changes the relationship – no matter who it is.
Debt Consolidation
Debt consolidation involves taking out a single loan in order to pay off your bad debts. The benefit of this type of loan is that it allows you to manage your debts far more effectively. The worst thing about having debts from multiple creditors is that it is extremely hard to manage or track your payments, and that will of course make it impossible to budget.
Negotiation with Creditors
If you are one the verge of bankruptcy, you may consider negotiating with your creditors to reduce the amount owed in order for full payment. Depending on who your creditors are and whether they are a single or multiple companies, also how large the amount is.
Bankruptcy
Bankruptcy is a last resort and should only be used when all other options have been exhausted.
There are many options available to you through the ITSA which is the government department that manages bankruptcy.
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