How Not to Fall into the Dangerous Payday Loan Cycle

No one wants to fall into the cycle of debt, but getting a loan may be the last available option to help you get by when things get rocky. A payday loan is one of the many loans that people resort to when they need cash immediately. This loan is a short-term alternative that charges a large amount of interest in exchange for quick financial relief. While it has been tested by many, you would prefer not to be involved with payday loans as it can leave you in a dangerous cycle.

The Danger of Payday Loans

The downside of payday loans is that they can charge up to thrice the amount you borrowed. In addition, the money loaned and the high fees must be paid in a concise amount of time. Usually, you’re only given two weeks to pay or as soon as you get your paycheck.

If you are short of money and you have a payday loan, the problem is that you might not be able to catch up with the amount of money you have to pay. If you cannot cover the loan, you might find yourself borrowing again and having to pay a more significant fee the next time––and the cycle continues.

Ending the Cycle

If you want to avoid financial problems with payday loans, it is best to talk to a payday loan company like Stones River Credit. With that, we will share four effective ways to prevent the vicious cycle:

Have an Emergency Fund

We can’t reiterate this enough––having an emergency fund is as important as your savings fund. But why does it have to be separate from savings? It’s because savings are already allocated for your future, and it may be for a new house, for your children’s studies, or other financial needs.

If you don’t have an emergency fund, your plans for the future will be stolen away because you’ll need to dig into your savings funds in case of financial emergencies. For this reason, start an emergency fund by keeping your tax refunds or a portion of your pay every month.

Look for Extra Work

If your situation can’t stop you from getting a payday loan, maybe it’s time to increase your source of income. Look for side jobs if you must because even if you’re getting by this time, the point is you are never running out of debts if you won’t do something about it.

Cut Down on Unnecessary Expenses

Have you ever thought about why you had to get a loan in the first place? Often, having debts is a sign that you are not managing your money well. As such, you should live a life that you can afford and stop spending more than what you are earning. Then, go back to your monthly bills, check where most of your earnings are going, and see if unnecessary expenses can be avoided.

Seek Alternative Loans

There are also government programs that may help you aid your financial crisis. If you can’t avoid getting a loan, you can find alternative loan places that do not charge too much interest for a short period.


Regardless of how much information you have gained from various places, your money is still yours to manage. So, be responsible for handling your money using the helpful tips mentioned above so that you won’t end up getting drowned in the debt cycle!

Apply for a loan that won’t surprise you with more debts than you can handle. Stones River offers honest and ,straightforward loans in Murfreesboro, Tennessee, to help you get by your difficult financial situations. Opt for an installment loan by getting in touch with us today!