If we have fallen into a spiral of debt from payday loans, we often think that there is no way out, but there are several ways to control the situation and they depend on the individual analysis of the situation of the given debtor. We can divide indebted people into two groups:
- debtors who do not own any property, e.g. real estate, a car or land
- Debtors with real estate or other valuables, such as cars, etc.
If we belong to the first group which does not have any property from which it could pay off payday debt or which could be seized by a bailiff, it is first to:
1. Carefully analyze the situation – at this point you should collect all debts and liabilities arising at the given moment arising from:
- mortgage loans
- cash loans or for car or leasing
- any payday loans or loans from other sources
- it is very important to sum up the arrears resulting from household maintenance (electricity, telephone, water, gas bills etc.)
To sum up all this, you can use a simple Exel spreadsheet or a reliable piece of paper. The summary should include:
- Creditor’s name
- amount of debt owed by the creditor
- the amount of interest payable, all fees related to reminders or debt collection
- the amount of monthly installments needed to pay the liability
Thanks to this summary, we can monitor the amount of debt and which we have already repaid. Which commitments grow at what pace and which are the priority for repayment.
2. Choose the order of repayment of your debts
As you know, we need to think about and stop growing debt. The most important element is stopping the payment of payday loans and it is completely unacceptable to take additional payday loans to pay the previous payday loans. It is obligatory to start paying off each of the loan companies separately and after a few months, if we pay off several companies it will be our little success. It is always possible to agree on repayment of loans in installments. What was written in our forum: Can you get along with payday loans? However, if our obligations are too high and we cannot pay the payday loans, we will have to undergo the payday loan recovery process. If we do not have any security, debt collection means:
- further paid reminders
- charging for the costs of legal proceedings or debt collection
- entries to the BIG, KRD or ERIF databases
- adding interest in the amount of 4 times the Lombard loan rate of the Bank Pola
Always talk to a debt collection company. Turning off the phone or not opening the door is not the solution here. It does not solve the problem which is still growing and growing. A debt collection company is the last moment to avoid a bailiff. And we don’t get along with the bailiff anymore and he can take care of our bank accounts, salary, pension or retirement etc. And with the debt collection company we can negotiate:
- the entire amount to pay the debt
- agree on interest
- whether to spread the debt into smaller, more convenient installments
Let’s introduce our company to our revenues and problems, they will hear us and will want to get along. However, if any of the companies providing payday loans strives and threatens us with a bailiff, let’s pay it off first.
3. How can you pay back payday loans?
This point is probably the most difficult question that is difficult to answer. We definitely have to take on odd jobs such as cleaning, working in security companies or supermarkets. We cannot despise even the possibility of earning $ 100 per month, every penny counts and brings us closer to the goal of paying off payday loans and getting rid of the problem, which is why we must remember that and stick to it. An additional occupation can also be work on the Internet, you can also search at home and sell unused clothes or unnecessary things from the basement on popular auction sites. However, we warn you here from carrying valuable items to the pawnshop. This is not a way out!
4. The psyche is the most important
Everyone probably knows how important the psyche is in life and what role it plays. You can’t get depressed !! You can’t break down and blame others. You need to take action because only by doing you can get out of this crisis. It is not politicians, friends or financial institutions that are to blame for our situation. It is us who have led us to this and now we have to deal with it. Heads up to many have managed to get out of the debt spiral, you will succeed!
* the information contained herein is illustrative information and should be consulted with a lawyer