Sometimes life throws you a curve ball, leaving you in a financial jam. If you don’t have an emergency fund, the situation can be pretty stressful.
Many people in this situation turn to same day loans for relief. As their name implies, you can usually have the loan deposited to your account the same day you apply.
But these loans come with very high interest rates. Although the loan term can stretch several years, you should think of them as short-term loans. Get through your financial crisis and pay them back as fast as possible.
But how can you quickly payback a same day loan?
Check out these five essential tips to help you pay back your same day loan and get you on the road to financial recovery.
1. Installment Loans Need a Budget
Short terms loans are typically installment loans. Each month you’ll pay a portion of the principal balance plus interest and fees accrued during the payment period. Unlike credit cards, your loan has a maturation date and as long as you make the payments, you’ll pay off the loan within the specified term.
But you need a solid budget to make sure you can afford the monthly payments. Write down all your income and expenses and prioritize all your debts. Look for opportunities to cut your spending to create extra money you can apply towards your loan.
Most goals can be achieved by following a realistic plan. To that end, write down a schedule outlining the dates you will pay each of your debts and stick to it.
2. Adjust Your Tax Withholding
You need to come up with extra money to make bigger payments on your loan. One quick way to do that is to adjust how much of your paycheck is going to taxes.
Many people want a big tax refund at the end of the year so they withhold more than what is required. That’s a bad idea if you’re struggling to make ends meet.
Check this IRS tax calculator to determine how much tax you should withhold from your paycheck. Make sure you are paying enough to so you won’t owe at the end of the year.
3. Create Extra Cash
Look around your house. You may be sitting on several hundred dollars of items you can sell.
List items you no longer need or want on eBay or Craigslist. Electronics, collectibles, sports memorabilia, old tools, and furniture are items which typically sell fast on these platforms.
Larger items like an old grill or a garage refrigerator are also in demand if they are in decent shape.
4. Speak With Your Employer
Talk to your employer and see if you can work more overtime. Just a few extra hours at time-and-a-half each week can make a big difference in paying off your debt.
Another option is to check with your human resources department about getting an advance on your paycheck. This has the same effect as a payday loan but without the interest rates. Some companies will even extend your repayment over several paychecks, leaving you with more money each check to recover from your hardship.
If you get an advance, just make sure to factor the lower payday into your budget.
5. Start an Emergency Fund
Once your debt is paid in full, stick to your budget and redirect the extra money towards an emergency fund. You’ll be prepared the next time you find yourself in a difficult financial situation.
Same Day Loans: Bottom Line
Same day loans can provide much-needed relief to anyone having a hard time making ends meet. But avoid paying high interest by repaying the loan as soon as possible.
Create space in your budget by eliminating spending on things you don’t need. Look for opportunities to create more money which you can apply towards your loan.
If you found this article helpful, please check out our blog for more useful tips.