While having payday loans as a financial backup plan, it is also right that you work towards complete freedom from debt. The faster you repay your loans, the faster you approach the goal of being debt free. One way payday lenders put the choice in the borrower’s hands is through loan limits.
While requesting for a payday loan, there are a few things to keep in mind to ensure that you can repay fast. However, the first step towards fast repayment is through the loan limits, which most borrowers do not do proper consideration before choosing. A Payday loan is typically between $200 and $1000, which must be paid back when the borrower receives the next paycheck; usually around 14 days to 30 days.
Knowing this, it is only wise that a borrower chooses a loan limit that can be comfortably repaid. Sadly, some borrowers only see their need at the point of borrowing and so, choose limits they cannot easily repay. Hence, they are more likely to default and compile debts. At such, they find that it is hard to attain debt freedom.
After choosing a comfortable limit, here are six best payday loan practices, to ensure fast repayment;
- Make Bi-weekly payments:
Instead of waiting until 14 days or 28 days to pay up your loan, you can make little payments every week, such that at the expiration of your loan period, you would have paid off your loan. Bi-weekly payments are easier to pay, than paying the whole bulk of your loan.
- Make smart buys:
Instead of spending money you get during your loan period lavishly, make smart buys so as to save a few bucks, which would all add up to the amount of your loan when you are ready to pay. Some borrowers get loan and forget about repayment until their loan period has expired. A smart borrower who wants to attain debt freedom, make smart purchases that saves him some bucks, towards repaying his loan. One thing that can help you make smart buys is budgeting. Make a budget for your spending and stick to that budget.
- Restrict the Limits of your loan:
Smaller loan sums coupled with a shorter time of repayment often means reduced interest rates. If you want to be able to repay your loan faster and get out of debt, then choose a shorter period for your loans.