Having a payday loan on your shoulders is problematic enough, but things can get really messy when you have multiple short-term loans that you have to take care of fast. Sometimes, people can underestimate the danger of taking out one loan after another and might find themselves in very challenging situations as a result. In other cases, there’s simply no other option but to go into deep debt, because something has suddenly happened in your life.
And while this situation is not ideal, it’s also not fatal. You have various options available to you when you are in financial distress, and you should use them as much as possible. And as long as you realize that this is a problem that should be dealt with as fast as possible, you will be able to get through the situation one way or another.
Make This a Priority
It should go without saying that paying off those payday loans should become your top priority until they are all properly cleared. Put off any extra expenses for as long as possible, and try to cut back on some of your regular spending as well. If you can cut a few corners here and there, this can add up to a lot in the end, and can give you more freedom to think about your payday loans.
If you have other lines of credit on top of those payday loans, the payday loans should still get prioritized. They have the biggest potential to impact your finances in the long run, due to the way the high interest rate can add up over a short period of time.
Make Sure Each Line of Credit Is Cleared
Dealing with multiple loans can make you confused and forgetful from time to time. It’s easy to miss a small but important detail when sorting out yet another payment. The final result could be a loan incorrectly staying on your credit report because you didn’t close it properly. Make sure to talk to each creditor separately and confirm that they have indeed marked your debt as resolved once you’re done paying off.
This is especially true in cases where you’re working with the same lender for several loans, in which case they might mix something up in their own accounting due to carelessness.
Check Your Credit Report
On that note, pay attention to your credit report once you’re done paying off the loans. You want to make sure that everything has been marked as resolved and that no negative marks remain on your account. This can sometimes take a while, especially if you’ve recently taken out a free credit report, in which case you’ll have to wait until the next available opportunity.
If you do notice anything out of the ordinary, bring it up with the corresponding lender and any applicable agencies as soon as possible. Don’t postpone this, because even a small delay can significantly complicate the process of resolving that issue later on. There are also certain time limits that you have to observe. If you miss those, there might not be much that you can do and you’ll have to stay with that negative mark on your record.
Prevent This in the Future
Another point worth considering in detail is how you can prevent this from happening again in the future. For many people, the kind of situation where they’re dealing with multiple payday loans at the same time is something that only happens once in a lifetime, after which they learn how to be careful. Some people just don’t get the message though, and keep on making the same mistakes over and over again.
Because in the end, if you have to do this multiple times, this is almost always a matter of you doing something wrong with regards to your finances. Take a step back, evaluate your situation carefully, and plan ahead so that you can live a more stable life in the future.
Have an Emergency Backup Plan
On the topic of plans, you should also have some sort of backup that you can rely on in case things get really messy. This can be a number of different things, but knowing that you can rely on friends and family, for example, is always a good idea. Talk to people around you and let them know that you’re in a difficult situation and might require more support in the near future. Many would be more understanding than you’d expect. And in the end, you don’t necessarily have to rely on their help, but it’s good to know that you have an alternative option available in case things go bad. This can give you much more confidence while you’re repaying your loan.