What to Do If you Cant Repay Your Payday Loan

Payday loans are a convenient form of short term borrowing, but if you find you can't repay your payday loan on the date it is due you can find yourself having to pay extra charges and interest. If you know in advance that you are not going to be able to make your repayment on the day it is due, speak to your lender as soon as possible. It is not an uncommon situation, and your lender may be able to offer a solution.

In some cases you may be offered a payday loan extension which may be a good option if you just need a few extra days to pay. However, you may have to pay another charge and some additional interest. An extension is only really advisable if you definately know you are going to be able to make the repayment and need a few days or weeks grace. If you are having financial problems which are likely to be long term, an extension will only add addtional fees to your loan and compound the problem.

When You Can't Repay Your Loan

Consider an extension if appropriate. Be aware that this can lead to additional charges and interest.

Speak to the lender as soon as possible and explain your circumstances. Lenders are generally sympathetic and will work with you to find a suitable solution. Make an offer to pay an amount regularly, no matter how small.

Ask the lender to stop interest/additional charges

Check your payment authorisation. If necessary speak to your bank to avoid addtional charges and fees caused by bounced direct debits.

If you are having problems with debts consider contacting a specialist debt management firm.


If your financial situation has changed significantly and you cannot forsee being able to repay the loan in the near future, then you need to inform your lender of your change in circumstances as soon as possible. There is a limit to how much interest and additional charges they can put on the account and it is important to get these additional charges stopped as soon as possible. Most lenders are sympathetic and although they may add a default charge to the account they will stop the interest running on the loan. Make an offer to pay what you can however little it may be. This will prevent any further action in most cases.

If you have made a payment authorisation to the payday lender - which you probably will have as most credit agreements include one, then you must be aware that this allows the payday loan company to take payments directly if your account is in arrears. Payment authorisations are usually made via direct debit or debit card. The lender can try to recover the money they are owed from your bank account or debit card periodically which could lead to problems with your bank. It is worthwhile informing your bank of the situation and asking them to stop any direct debits if they are likely to cause problems.

Lastly consider using the services of a specialist debt management service if you are struggling with debt. They may be able to help you form a debt management plan and get back on your feet- they can even get some of your debt written off. If you owe over £5000 in total and are having problems making repayments it is certainly worth getting a free consultation with one of the firms listed below.