Payday Loan Consolidation

• If you have more than one payday loan outstanding, consult a payday loan consolidation company. The company may be able to help you to minimize the fees you pay while reducing the amount you pay with each paycheck to an amount you can afford. Some payday loan consolidation companies also offer budgeting courses to help you learn how to properly plan your monthly budget and save money so that you don't fall into the payday advance trap again.
  
  

Bank Loan

• Some banks and credit unions offer short-term loans that are similar to payday loans; however, the fees are likely lower if you go through a bank. The bank may treat your loan payments in the same manner as the payday loan company -- by taking money directly out of your bank account when you get paid. When considering a bank loan, ask whether the bank will report the loan to the credit bureaus. If the loan is reported, it is an added bonus because most payday loan companies don't report to credit bureaus. Remember that paying your loan on time can boost your credit if the bank reports to credit bureaus. Generally, financial education courses aren't offered by banks.
  
  

Personal Loan

• A personal loan from a family member or friend may help you to pay off payday loans without the high fees involved with the payday loan. Before you ask for a loan, you have to determine how much you can actually pay on the personal loan with each paycheck. If you are able to secure a loan, put your repayment plan in writing in the form of a promissory note so that you and the person lending you the money know the plan. If necessary and if you have something of value, offer that item as collateral for the loan until you pay it off.
  
  

Seek Legal Help

• The exact form of legal action you can take is dependent upon your home state. In some cases, your state's Attorney General's office or a legal aid office can check the terms of your payday loans to verify that the loan is in compliance with state laws governing payday loans. If any terms don't meet the requirements set forth by the law, your counsel may be able to work out terms for you to pay what you owe that meet state laws and reduce hardship on you.