You decided to get a payday loan when you found yourself in a tight spot and you were short on cash. You were going to pay off your payday loan right away to avoid extra fees and high interest rates. Something came up and you had to get an extension on your payday loan. Then things got worse and you had to get another payday loan. And another.

Now, your payments and interest rates are so high you are getting behind on your payments and on other financial obligations as well. Late fees and payday loan payments are eating up your entire monthly income! You are beginning to think there is no way out. What can you do to get out from under your payday loans?

Your late payments on your payday loans and other bills can have an adverse affect on your public credit records and your credit rating. This will increase interest rates on your credit cards and can cause your homeowners insurance premiums to go up. You are considered a higher risk when you cannot meet your financial obligations.

Though your credit scores can be improved as time goes on; and even if you pay off all your financial obligations and your payday loans, your delinquent payment history will not go away.

The first step to getting out from under your payday loans is an obvious one. Do not get any more payday loans! Secondly, get the late bills and payday loans caught up and be sure to stay current. Staying current saves you money on late fees and climbing interest rates. Make more than the minimum payment; otherwise you will never get the bills paid off because you will be making payments on the interest and not the loan amount itself.

Take time to go over all your bills and payday loans and know where you stand on all of them. Not opening your bills and not answering the phone calls from the bill collectors will not make them go away. Look for the bills and payday loans that currently have the highest interest rates. Work on getting them paid off first, but remain current on any other bills.

Paying bills, credit cards and payday loans with credit would not normally be the best solution; however, if you can lump all your payday loans and other debts into one loan payment at a lower rate of interest, you may be better able to meet your payment obligations. You would have a better chance of paying the one loan off rather than several different payday loans and other debts at higher interest rates.

Bankruptcy as a means to get out from under your payday loan is not a “quick fix” and should be avoided if at all possible. You should file for bankruptcy only if there is no other way out. Bankruptcy is expensive and adds to the derogatory information on your public record – not to mention the adverse affect it will have on your self esteem.

Review your budget and keep a journal of every penny that you spend. By doing this, you can find ways to cut unnecessary expenses. The amount of unnecessary spending that you cut out can be applied toward your payday loan payments as well as toward building a savings or “nest egg” for future unexpected financial setbacks. This will prevent you from ever again needing to resort to a payday loan.

To assist you in coming up with some extra cash in order to get a start on getting out from under your payday loan, you could temporarily take on extra work or have a garage sale. Do you have a hobby? Perhaps you could turn your hobby into a part-time business by making and selling items or teaching your craft to others and charging a fee to teach.

Assess your home, your lifestyle, and your assets. There may be something there that you can use to help you in your goal of paying off your payday loans. Working responsibly to gain control of your finances is the best way to get out from under your Payday Loan obligations.