How to escape payday loans forever
We have explained how to get money back on unaffordable loans. But we don’t want you to have to rely on more payday loans to get by in the future.
We understand that it can sometimes be hard to make ends meet and that emergencies can arise. But there are ways to help you escape the cycle of loans and finally take control of your money.
It can be tough at first, but we promise you that it is simple to do and that the results are worth it. Take action now.
Take control of payday loans with a Debt Management Plan
One great way to deal with ongoing debts you can’t manage is with a Debt Management Plan (DMP). This is a way to freeze your debts and stop interest being added. It gives you space to breathe and a way to become debt-free without bankruptcy.
There are many organisations that can help you set up a DMP, but we like the debt advice charity StepChange, which has a team of experts in setting up DMPs and won’t charge you a penny. If they can’t help in your case for some reason then they will know who can assist you.
Whoever helps you with your DMP can work out how much you owe, how much you can afford to pay and then contact organisations you owe money to. They help you budget realistically and act like a safety barrier between you and the lender. Most lenders won’t chase you or charge you more interest once you have a DMP in place and stick to it.
Most people say how relieved they are once they have a DMP in place. They feel in control and are able to rethink how they handle money. You can also use any refunds from payday lenders to help pay your debt off faster if you like.
What should I do now to take control of my debts?
If you are not in control of your debts then take back control today by speaking to StepChange or another organisation such as the Citizens’ Advice Bureau to see if a DMP is suitable for you.
If a DMP is suitable for you, then you’ll be advised to cancel any payments, standing orders or direct debits to lenders. All of this will then be handled through the DMP.
Don’t forget to make a complaint against any payday lender that has loaned you money. You can use the fact that you have started a DMP as evidence that your loans were not affordable.