We often suggest that our customers consolidate payday loan debt and begin the long process of becoming debt-free. But what do we do when we are finally finished paying off that debt? How can we make sure we do not fall into the same habits and mistakes before? These are hard questions to answer, but we hope to offer a bit of guidance. Payday loan consolidation is difficult enough, but making your way back into the debt-free world can be challenging.
Understanding Payday Loan Laws
Knowledge is power when you are facing predatory money lenders. If you make sure to research the laws that protect you and your family, then you can avoid some of the pitfalls that previously plagued you. Many laws in your region may actually work in favor of the money lenders simply because they have a much larger lobbying presence than you do. If you are not aware of your rights and the legal loopholes that they can exploit, then you will find yourself back into debt and struggling to consolidate once more. Going through payday loan debt once is enough – twice is too much!
Keep Track of Your Finances
In some cases, the only reason payday loan debt accumulates is that you may lack an understanding of your own finances. We have all been there. It seems like plenty of money is entering the bank account every month, but somehow it never seems to be adequate.
To rectify the situation, you must take a look at credit card statements, bank account information, and your bills to determine where the money is being siphoned. Perhaps you recognize that your kids borrow too much money for movies and snacks. Maybe your night out with the boys is costing too much. The only way to get your finances on track is to know where money is coming and going.
Tightening the Belt to Avoid Payday Loan Debt
Once you determine where the debt is coming from, you can eradicate it with a few steps. It isn’t hard to determine where you can save money when the facts are staring at you in the face. After you determine how to save money and maintain a surplus of money, you can avoid payday loan debt completely.
For many people, debt collects in numerous ways. As evidenced by the recent financial meltdown, many unqualified people “owned” their homes. In reality, these people paid expensive mortgages every month, which eradicated much of their monthly income. Without money to spend on food and other family items, families increasingly turned to predatory payday loan lenders. It may be hard to stomach, but rental properties will help you avoid this. Find a property that you can rent well below your monthly earnings. Live within your means for a while, and you will not get caught in the cycle of debt.
Follow these simple steps, and you will hopefully have a much easier time avoiding payday loan debt the second time. You’ve experienced it once, and there is no reason to do it again!
