Did you know that the typical American is burdened by at least $90,500 in debts?
When you have a debt problem that huge, it like being trapped in a debt hole or a debt quagmire.
And if you find yourself in a debt hole, the first thing you must do is stop digging.
The first thing you should do is develop a debt repayment plan. What do you need to do, and when do you need to do it, to get back on a positive financial track?
With the aid of a good financial advisor, you can develop a debt repayment plan that can help you aspire towards a debt-free day in the future.
It may take a long time to reach that debt-free day, but it will take even longer to happen if you don’t start working towards it today.
However, whether witting or unwittingly, we do things that self-sabotage our own aspirations to become debt free.
If you are grappling with unmanageable debt, then don’t do this.
Get a Payday Loan
The best way to get deeper in debt is to take out a payday loan to pay down your unmanageable debt.
A payday loan is essentially a predatory loan product that is designed to keep you in perpetual debt and paying never-ending late fees.
And because you are mired in debt and have few options, you don’t have any leverage when it comes to loan terms.
All you need to get a payday loan is a bank account, a job, proof you have been employed for over a year, and proof you have lived in the same place for a year. All of those things prove that you have personal life stability and can pay back the loan.
You don’t even need to have good credit. In fact, the worse credit you have, the more in interest fees you will be charged for the loan.
You can apply for a payday loan online and be approved instantaneously or within a day.
After approval, your bank account will automatically begin repayments to your payday lender according to your direct deposit paydays.
If you aren’t paid, miss a payment, or if your bank accounts have automatic bill payments for other bills, then you will be charged heavily in interest fees.
The average payday loan interest fee is 400% However, depending on where you live and the payday lender you get money from, the interest rate can be as high as 1,000%.
Even if you successfully pay back the payday loan, you may end up in more debt than when you started. You will have less money to pay your everyday expenses and will have less money too.
Develop a Budget
Develop a budget and stick to it while you are paying back your debts.
And whatever you do, don’t take out a payday loan.
Read More
3 HABITS TO DEVELOP TO LIVE A THRIFTY LIFE
HOW TO TECHNICALLY GET AWAY WITH NOT PAYING TAXES
WHAT ARE THE JOBS THAT MAKE $1000 A WEEK
HOW TO GET PAID FOR ADVERTISEMENT ON YOUR CAR
5 MONEY LEAKS TO PLUG FOR MORE SAVINGS
Allen Francis was an academic advisor, librarian, and college adjunct for many years with no money, no financial literacy, and no responsibility when he had money. To him, the phrase “personal finance,” contains the power that anyone has to grow their own wealth. Allen is an advocate of best personal financial practices including focusing on your needs instead of your wants, asking for help when you need it, saving and investing in your own small business.