If you have recently gone through a tough patch financially, you may have applied for a couple of payday loans to help you out, only to find that you have become stuck in a cycle of constantly needing the loans. If you are wondering if there is any way you can break out of the payday loan cycle, consider using one or more of the following tips.

Seek Out Charitable Assistance For Your Bills

If you find that you are unable to pay your bills each month, you may have started to depend on payday loans to keep your utilities on. However, since these loans come with high fees and interest rates, you are paying much more to keep the lights on by using these loans.

Instead of going to payday loans as a first option, you may want to seek out charitable institutions for assistance for your bills. Some of your local churches may offer assistance to any household once a year. Also, you may want to check out your local LIHEAP Campaign for Home Energy Assistance program during the winter months to keep your home heated.

Slowly Build Up An Emergency Fund

If you never seem to have money left over each month and an emergency arises, you may have to turn to payday loan institutions to get you through a rough time, such as when an out-of-state family member gets sick or your car breaks down. This could deplete your finances quickly each time, making it necessary to continue applying for loans to pay for basic bills.

To avoid having to run to the payday loan office, slowly try to build up an emergency fund. Even if you can only put back five dollars every week, if you never touch that money, it can eventually build into a tidy sum that may come in handy when something unexpected comes up.

Pay More Than The Minimum Payment On Your Payday Loan

While you are working on breaking out of the payday loan cycle, you also need to turn your attention to your current loans. If you find that you can never seem to get them paid off, you should consider paying more than the minimum payments. 

Since the payments usually only mostly cover the interest rates on your payday loans, with very little going towards the principle, it can take you a long time to pay off the loan. Whenever you make your payments, try to pay as much as you can extra towards the loan. Even a few dollars each week can help pay off your loan a little quicker.

Apply For Payday Loan Consolidation For More Than One Loan

If you feel as if you have gotten in over your head with several payday loans, you may want to think about applying for a payday loan consolidation loan. This type of loan uses the funds to pay off your current loans, making you liable for only one payment each month.

Sometimes the services are able to settle for a lesser payment than the loan amount, saving you money overall. And since these loans also come at a much lower interest rate than payday loans are notorious for having, more of your payment goes toward the principle instead of just the interest.

Using one or more of the above tips can help you pay off your current payday loan and help you break out of the cycle of having to depend on them to get by each month. If you have more questions about paying off your payday loans, you may want to contact a local financial institution that offers payday loan consolidation and ask for their assistance, such as Real PDL Help.