8. Ask for a Pay Advance
If you have a good relationship and a strong history with your employer, asking for an advance can go a long way. Many employers will offer pay advances for employees who have proven themselves.
Be honest about your situation. Help your employer understand that the sooner you get paid, the less interest and fees you have to pay. Be sure to mention that the less stressed you are, the better you can do on the job.
Consider offering to put in extra hours, which will not only build goodwill but also make you more money. Especially if you get paid overtime.
9. Work Overtime
If you’re an hourly worker in the United States, you are entitled to overtime pay when you work over the standard workweek. Typically this means that you get 1.5 times your hourly rate for every hour worked over the normal workweek, usually about 40 hours.
There is no shortage of side jobs in today’s gig economy. Anybody can make a few extra bucks driving for Uber, walking dogs for Wag, or delivering food for Doordash. If you have the extra time, use it.
11. Avoid Taking on New Payday Loans
Do whatever you need to do. Save money, work overtime, borrow from friends, talk to a credit counselor but do not fall back into the trap. The short-term relief is not worth the long-term indebtedness that you’re trying to pay off.
Learn From the Experts
Contrary to the claims of many other money-advice sites, personal finance is a difficult subject. There are dozens of problems to keep track of, and the stakes are as high as can be. It’s also deeply emotional, and many of us inherit baggage about money from our parents and environment during childhood.
The proof is in the numbers. Americans consistently fail to reach their financial goals. The average citizen holds $25,483 in non-mortgage debt and saves less than 8% of their income. A recent study showed that a staggering 77% of Americans feel stressed and anxious about their finances.
It shouldn’t be a surprise. The American educational system does a poor job of helping people understand how to manage money. Many Americans go their entire lives without taking a single class on budgeting, taxes, or managing credit. It sets all but the most privileged up to fail.
Fortunately, there are many people trying to turn that around in both the free market and higher education. There are endless resources across every medium: articles, podcasts, webinars, and more. Taking the time to remedy the gap in your education will do wonders to protect you from the pitfalls of personal finance.
The Bottom Line
Getting out of the payday debt trap is not easy but is the first step to ensuring a future of financial freedom. Once payday loans are no longer hanging over your head, you’ll not only feel better but will have the freedom to begin planning the financial future that you deserve. Being debt-free with money in your bank account is worth the hard work.
Some, but not all payday lenders will negotiate with you. At the end of the day, they care most about getting their money back. Some have a strict no-negotiation policy, and others will only negotiate if you stop payments and can demonstrate that you really can’t pay. Either way, it does not hurt to ask.
This is a bad idea and not a great way to get out of debt. The lenders will report that you defaulted to the credit bureaus and may take you to court.