If a repayment is coming up and the money isn’t there, acting early gives you more options and less stress.
Need to know
- Contact the lender before the payment date if you can’t pay, and ask about a repayment plan.
- FCA rules require lenders to treat customers in financial difficulty fairly and consider forbearance.
- Pay priority bills such as rent, council tax and energy before payday loans.
- Free debt advice and, in England and Wales, Breathing Space can give you time to plan.
Falling behind on a payday loan is stressful, but there are clear steps you can take, and free help is available.
Act before the due date
Contact the lender as soon as you know you can’t pay. Explain your situation and ask what they can offer. Under the Financial Conduct Authority’s rules, lenders must treat customers in financial difficulty fairly, which can include:
- a repayment plan you can afford
- freezing interest and charges
- a short pause in payments
Protect your priority bills
Some debts have more serious consequences if they’re not paid, so they come first:
| Priority | Examples |
|---|---|
| Highest | Rent or mortgage, council tax, energy, court fines, child maintenance |
| Lower | Payday loans, credit cards, catalogue debts, borrowing from friends |
If automatic payments to the lender would leave you unable to pay priority bills, you can cancel the continuous payment authority through your bank and agree another way to repay.
Free help
- MoneyHelper, StepChange, National Debtline and Citizens Advice give free, confidential debt advice.
- Breathing Space: in England and Wales, a debt adviser can apply to pause most interest, charges and enforcement action for 60 days while you get advice.
- Scotland and Northern Ireland have their own debt solutions, which an adviser can explain.
Important
Avoid taking a new loan to repay this one, and be careful of companies that charge to “manage” your debts. Free advice is available from the services above.
Helpful step
Before you call the lender or an adviser, write down your monthly income, essential bills and every debt you owe. It makes the conversation quicker and the plan more realistic.
Moving forward
Once you have a plan, stick to it and keep the lender updated if anything changes. If you think the loan should never have been approved, see our guide to complaints and the Financial Ombudsman. For the future, our guide to alternatives to payday loans can help you avoid needing one again.
Your questions answered
Will the lender freeze interest?
Many lenders will consider freezing interest and charges or accepting reduced payments if you can show you’re struggling. Ask, and get any agreement in writing.
Should I take another loan to repay this one?
Usually not. Borrowing to repay debt often makes the problem bigger. Speak to a free debt adviser first.
Can the lender take me to court?
It can, but that’s usually a last resort. Engaging with the lender and getting advice early makes court action much less likely.
This guide is general information, not financial advice. Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk. We don’t arrange loans or work with lenders. Before borrowing, check the lender is authorised on the FCA register, and consider free debt advice from MoneyHelper, StepChange, National Debtline or Citizens Advice.