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Payday loans can easily become a trap that you can't get out of. It starts off innocently enough when you take a payday loan to get you through a tough spot until your next paycheck arrives. However, once the loan is due, you find that you don't have the extra money to pay it off. So, you decide to renew your loan, or take out another one to pay it off, and the cycle has begun.

Being stuck in this cycle can be devastating to your finances. Payday loans have extremely high interest rates, and more often than not, you can pay thousands of dollars in interest even though you only borrowed a few hundred. The good news is, the payday loan cycle can be broken if you make a plan and stick to it.

Reducing Your Expenses

The first step to breaking the payday loan cycle is to trim your expenses as much as you can. The ultimate goal here should be to reduce your expenses by the amount necessary to pay off your loan. In order to do this, you need to reduce your immediate, short-term expenses. You won't be able to reduce things such as rent, car payments, or utilities in time to save enough money to pay off your loan.

Here are some ideas for reducing your short-term expenses. Many of these ideas won't sound appealing, but in order to break the payday loan cycle, you are going to have to make sacrifices. Start off by eliminating or reducing things that aren't necessary. If you smoke cigarettes, drink alcohol or coffee these are three places to begin. Even if you don't want to quit these things all together, if you commit to not buying these items until you have broken the cycle, you can use them as a reward for accomplishing your goal.

You can also trim your budget by drinking more water and less soft drinks or juices. In addition to saving money, you can improve your health. You can reduce your food budget by not eating out until you've paid off your loan. You can also reduce your food budget by changing the way you do your grocery shopping. Use coupons and store rewards cards, only buy sale items, eat more chicken and less beef, eat more pasta, buy less snack foods, buy generic brands instead of name brands, etc. Another way to reduce your food bill is to make sure you never waste anything. If the people in your house don't finish their meals, save the leftovers and eat them later. Also, don't let any food spoil.

If you drive a car, you can save a lot of gas money by driving less. Any opportunity you have, either walk, ride a bike, or take public transportation to where you are going. When you do have to drive for something, try to accomplish as many errands as possible on one trip, rather than taking multiple trips. Also, make sure your tires are properly inflated, and drive a little slower. You'd be amazed at how much gas money you can save by doing these things.

Increasing Your Income

If you have reduced your expenses as far as you can, but are still not able to save enough to pay off your payday loan, the next thing you should do is look for ways to increase your income. Much like reducing expenses, you need to look at increasing your income from a short-term perspective. Like cutting expenses, first look at the easy things you can to do first. If you work an hourly job, see if you can get more hours.

If you can't get more hours, you need to look for ways to make money on the side. Again, you might not want to spend time doing this, but if you can work more just until you can break the payday loan cycle, you can reward yourself once you've accomplished your goal. The first place you should look to find some work on the side is Craigslist. The site has a section titled, "Gigs". If you browse the gigs section, you can easily find something you are capable of doing to earn some extra money. Most of the gigs listed can be done from home. This makes it so you can do them when it's convenient for you. If you don't find anything in the gigs section, check the employment section for part-time jobs. There are always plenty listed.

Another Way to Break the Payday Loan Cycle

Once you've exhausted any means to reduce expenses or increase income, if you still can't break the cycle, the next thing to consider is getting a longer-term payday loan. There are payday loan lenders that will allow you to have as much as 3 months to repay your loan. If you can't save enough money between paychecks to pay off your regular payday loan, this is an option that can buy you more time. If you take the steps above to reduce expenses and increase income, you should definitely be able to pay off a long-term payday loan. You just need to make your plan, and stick to it until the cycle has been broken.

We've found the best long-term payday lender on the internet. To get set up with a long-term payday loan, click on the following link: Long Term Payday Loans

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