You have an installment loan, and your next payment is coming up, but you are short on cash to pay the payment. This can be a stressful situation. But before calling it quits and allowing the loan to default, consider these options:
Get a temporary extra income
Lots of temporary or “do it on your own time” jobs are available with the expansion of the share economy. If you have a car, you can join Uber or Lyft and drive for several nights. If you have extra space at your place, or able to leave your place for a few days, you can rent out your place nightly through Airbnb or Flipkey. There are also small temporary jobs available on Craigslist in the “Gigs” category which you can apply for.
Borrow friend or family
It might not be the easiest request, but it is better than having bad credit. It is important that whoever will be lending you the money feels trustful that you will return the money ASAP. Perhaps offer a collateral and let the know that their money will be returned right after you make your upcoming loan payment.
Get a payday loan
If you don’t have a friend or family that will lend you money for the short period you need to pay your loan, consider a payday loan. Though payday loans have high interest rates, if you take it just for one period (not constant over a year), the fees are proportional to the payday loan and certainly less expensive than not paying your installment loan.
Refinance your loan
If you feel part of the reason you are not able to keep up with your loan payments is because the payments are too high, there is a strong possibility your current loan’s interest rate is too high. Refinancing it with a lower rate before your next payment is due will not only help save you money on the next payment, but also save you money from then on out. Make sure to clarify with your current lender if there is an early payoff penalty.
Strict budgeting
You have daily expenses, from gas to food to anything else that arises. A way to make sure you have enough money for your upcoming loan payment is to make some sacrifices on other expenses so that you can save money to allocate for the loan. This is not an easy task, but learning to be disciplined with money and payments will allow you to increase your skills in budgeting for the future.
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