Help with payday loan debt
Because of the short repayment periods and the high interest they charge, payday loans can quickly become a problem if you can't afford to pay them back.
Not repaying a payday loan on time can often lead to expensive charges - and even if you arrange to 'roll over' the loan, the total cost can start to mount up very quickly. If you find yourself in this situation, don't hesitate to get help. The longer you leave it, the more serious the problem could become.
Our expert advisers have helped many people in your situation before.
See what debt help is available here.
Deal with payday loan debt problems
Depending on your situation, you may be able to come to some kind of agreement with your lender(s).
Try calling your lenders and explain why you can't afford your payments, and how much you can realistically afford to pay. Lenders may be more willing than you think to let you repay your debt in affordable instalments. A longer repayment period could increase the total interest you pay, and is likely to cause some damage to your credit rating, but delaying things will only make the problem worse.
If you can't come to an agreement with your lender, we could still help. Take a look at the different ways we can help you tackle your debts.
Debt solutions for payday loans
There are a number of debt solutions that can help with payday loans. The right one for you will depend on your situation, so try our solution finder to see which is best for you.
Some of the debt solutions we offer include:
- Debt Management Plan >
- Debt consolidation >
- IVA (England, Wales & Northern Ireland only) >
- Debt Relief Order >
- Trust Deed (Scotland only) >
- Debt Arrangement Scheme (Scotland only) >
- Bankruptcy >
Debt solutions can affect your credit rating and fees are payable for ongoing services.
Extending/rolling over a payday loan
Most payday loan providers will let you 'roll over' a loan if you don't want to pay it back on the agreed date (or can't afford to).
This simply means you are extending the repayment period.
There will usually be additional charges for this, and if you have to extend the loan more than once it can become very expensive to pay back.
That's why you shouldn't roll the loan over if you think you're struggling. Instead, you should contact the lender to explain your situation - and if they can't help, seek expert advice.
What is a CPA?
A continuous payment authority, or CPA, is a bit like a Direct Debit. It is a regular payment that leaves your account automatically. Many payday loans are repaid this way.
Of course, if you can't afford to repay your payday loan, this can cause problems. If you simply don't have the money in your account, the payment could be rejected, or your bank account might go overdrawn - both of which can incur expensive charges.
This is one reason why it's so important to get help as soon as possible. If you can work out an alternative arrangement for repaying your debts, you are less likely to be charged for missed payments (although there are no 100% guarantees).
What is APR - how is it calculated?
APR stands for 'Annual Percentage Rate'. It gives you an idea of how much your loan might cost in interest and charges over the course of a year.
Even though payday loans aren't repaid over a year, the high APR tells you that interest can grow very quickly if you don't pay it back on time.
If you're worried about your interest and charges getting out of control, don't give them any more time to grow. Get in touch today and find out how we could help you. In most cases we can get your lenders to reduce or freeze the interest and charges on your debts, which can make them much easier to pay back.
Alternatives to payday loans
There are several alternatives to payday loans that could work out cheaper. These include:
However, you should only ever borrow money if you're completely sure you can pay it back. If you're thinking of borrowing money because you're struggling, it's better to get expert advice.
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