When in immediate need of cash, taking out a same-day loan is one thought that’ll certainly come to mind to meet your financial needs.
Besides being relatively quick to process, getting this type of loan doesn’t consider your credit score so it’s an option for those with bad credit. However, there’s a catch: same-day loans are usually very expensive compared to other kinds of loans.
What’s a Same-Day Loan?
Same-day loans also referred to as payday loans, are debts offered by 67CashToday and other similar loaning firms designed to immediately provide you with financial aid if you’re in a pinch. These debts come to your rescue during emergencies such as repairing a broken boiler or your utility bills exceeding your expectations, with the threat of service disconnection just around the corner.
As long as you meet the following requirements, you should be able to apply for the same day loan:
- Be over 18 years old.
- Own an active checking account for deposits.
- Be a permanent United States resident.
- Not employed by the military.
- Have a stable job and earn at least $1,000 per month.
With the high-interest rates associated with same-day loans, paying off this kind of loan often feels exhausting. This is why it’s best to clear your debt as soon as possible and start building a secure financial future. If you need to get out of same-day loan debt quickly, look no further. We’re giving you a rundown of the six best practices to pay off a same-day loan.
What are the Best Practices to Settle Same-Day Loans Quickly?
If you’re committed to quickly clearing your same-day loan, here are some of the best practices to follow;
1. Create a Budget
The first step to getting out of same-day debt is to set a budget plan. After all, you need to know where your money is going to have any hope of stopping the cycle of debt. With this in mind, start your plan by writing down all of your income and expenses. Prioritize spending on basic needs and paying off the loan.
You should prepare to allocate less on leisurely expenses and see if you can let go of recurring expenses that you can do without for the next few months. More money put into paying off the loan means less ends up being canceled out by the high-interest rate.
2. Refinance Debt
If the same-day loan’s interest is too much for you to handle even with proper budgeting, you should consider taking out another loan. While this might look counterproductive, it’s actually a great way to lessen the burden of your same-day loan.
For example, you can apply for credit cards or home equity loans, and then use the money from that loan to pay off your same-day loan, because these usually have lower interest rates, and they give you more leeway in terms of payment schedules. You can then focus all your energy on paying off these low-interest loans as quickly as possible.
Same-day loan debt often goes out of hand if you already have a lot of existing debts prior to it. One option for getting out of same-day loan debt quickly is debt consolidation. Debt consolidation combines all your debts into a single debt. By doing so, you will get more of a break-in interest rate by consolidating high-interest same-day debt with lower-interest debt. You’ll also get all your loans taken care of under one payment plan.
3. Get a Side Hustle
Another effective approach to quickly clear your same-day loan is getting a side hustle to boost your current income. This can either be a freelance project or a second job that can consistently offer you additional income. Some examples of popular side hustles are:
- Working as a virtual assistant
- Pet sitting
- Web developing, designing or writing as a freelancer
- Selling handmade goods
- Delivering groceries using online apps
The extra money you earn from these side hustle gigs should be channeled towards making bigger deposits to clear your same-day loan. However, you have to make sure that these gigs do not get in the way of your main source of income.
4. Ask for a Cash Advance
If you’ve worked at your company for quite some time and you are on good terms with your employer, a great solution to consider would be to request a cash advance to clear your same-day loan. You don’t have to feel embarrassed about this request because many employees request a cash advance from their employers when faced with unexpected expenses such as medical bills or home repairs. However, make sure that the cash advance is directly channeled towards settling your high-interest same-day loan.
5. Get Credit Counselling
Understanding finances is often complicated for the average person. Because of this, it’s easy to find yourself trapped in same-day debt and not know how to free yourself from such a trap. This is why consulting a credit counselor is advised because this expert will help you to better understand your financial position. Consequently, you’ll be able to develop a plan on how to free yourself from the debt cycle.
A credit counselor can help you by negotiating with the lender to try and get late fees waived or pay lower interest rates. You don’t have to pay to get these services from a credit counselor because you can find one for free either at credit unions, universities, military bases, or local governments. With this professional’s help, you’ll be able to understand your financial position better and come up with a plan on how to best free yourself from the same-day loan.
6. Ask for Help From Family and Friends
If you don’t want to take out another loan from a financial institution, consider asking your friends and family for financial assistance. The advantage of taking a loan from your loved ones is that you aren’t required to pay any interest, which will certainly be the case should you opt to get a loan from a financial institution such as a credit union.
Before asking your family and friends for help, it’s best to find out how much you can contribute to clearing the same-day loan. Come up with a plan on how you pay them back, as this will make it easier for them to willingly and readily help you with your financial predicament.
A same-day loan is an easy way to get quick cash. However, you could get stuck in a cycle of debt that’s almost impossible to escape if you don’t make the effort to clear it as soon as possible.
The tips mentioned above should help you clear off your debt sooner than later, bringing you closer to financial freedom.