Paying back a cash advance loan can be extremely difficult for most people, but it is crucial for anyone who wants to get in control of their money and financial situation. Cash advance loans have some of the highest interest rates in the lending industry, and they have a reputation for being hard to pay back. The main reason for this is that instead of charging a standard interest rate, most cash advance loans charge a flat fee. This means that even if you pay off some of the loan, you may not save anything on the fees until the loan is completely paid off.
Fortunately, there are ways to get these loans paid off quickly. Try these tips to get out of your cash advance loan.
Find out what the fees are on all your cash advance loans. It makes the most sense to pay the minimum on all of the loans but one. Pick that one based on which one of the loans has the most fees charged on it. Every month reevaluate this list and make sure that no fees have changed, if they have, concentrate on paying off the loan with the “new” highest rates.
Pay attention to changing fees. Some loans charge less in fees once you have the loan below a certain amount. If any of your loans are like this, pay down enough to reach the next lowest fee level, then switch to paying a loan with higher fees. Don’t assume that simply because you have the terms at the time you took out the loan that the terms are still the same. Many lenders reserve the right to change terms in the middle of the payback period.
Make cuts wherever you can. Cash advance loans are one of the worst types of debt to have. Cut off your cable, turn off your air conditioner, or eat out of your pantry for as long as possible to get the money together to pay the loan off. Once it’s paid off, you can start a new subscription.
Use a credit card to pay off the loan. If your loan company doesn’t accept credit cards, use a cash advance. While the interest rates on these loans are high, they’re better than the interest and fees charged pay cash advance lenders. If you don’t have access to a credit card, wait a month or two before trying to reapply for a card. Even paying off a cash advance loan partially will help you to reduce your total debt amount.
Earn extra money. Consider taking on a temporary part-time job for a little while to earn enough money to get the loans paid off. If you can’t find work through traditional work, hire yourself out to friends, relatives, and neighbors. Wait tables, mow lawns, babysit, or do anything else you can think of to earn enough money to get the loan paid off.
However you choose to pay off the loan, remember that the most important thing is to get out of the toxic debt and move on with your life.