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What to do When You Can’t Pay Back Your Payday Loan

If you’re having a hard time repaying your payday loans in full or on time then you may be wondering what options you have. The worst possible thing you can do in this situation is to ignore the issue. It is important that you contact your payday lender right away to gain control of the problem. It is also crucial that you don’t panic, but approach the issue of repayment in a calm and collected manner. Keep in mind that you’re not alone; in fact there are tens of thousands of people who struggle to pay back their payday loan every year. By taking an active approach, you can minimize any interest you incur and penalty charges, as well as prevent you from getting even further into debt. Here are a few tips to follow when you find yourself unable to repay your payday loan on time or in full.

Guidance for Payday Loans 

It is required that lenders treat their borrowers who are having financial difficulty with forbearance and in a fair manner. This means that they will work with you in order to come up with a reasonable plan in order to repay the money that you owe over a do-able time period. Additionally, any action your payday lender takes against you must be proportionate to the money you owe. The lender is also held accountable. If you think that your payday lender was irresponsible in any way then you may want to consider filing a complaint against them.

Get Free Debt Advice

If you are having a hard time paying back your loan and need assistance then it can be worth your while to speak to a debt advice organization. They will aid you in finding the right debt solution for your specific situation, and may help you negotiate a reduced or new payment term with your payday lender. Avoid the commercial debt-management companies, as there are many free independent debt advice ones that you can use.

Make Sure Your Payday Lender is Playing Fairly 

Your payday lender is not permitted to put you in any undue pressure to repay your loan. This means that they are not calling your place of work without your permission, they are not calling your family members or employer and discussing your debt with them, and they cannot refuse to deal with the debt advice service that is helping you. Ensure that your payday lender is treating you with respect, and following the guidelines that are given to them.

See If Your Payday Lender is Part of a Customer Charter

It is recommended that you check to see if your payday loan company is part of one of the main trading bodies. This means that they are required to deal with your case in a sympathetic and positive manner. They must disclose exactly how the payday loan works, and the cost of the total loan, including interest and charges. They are also required to come up with a repayment plan that is reasonable and do-able for your given situation.

Consider Canceling Your Recurring Payments 

If you are unable to afford the loan repayments on your payday loan or the loan means that you are struggling to pay for necessary things such as mortgage, food, utility or rent then you should call your bank and cancel the recurring payment system that you have set up. This is the authority for payday lenders to take out money from your bank account. Make sure you do this at least a day before it’s due and ensure that you’ve informed your payday lender that you have done so.

Do Not Roll Your Payday Loan Over

Your lender may make the suggestion that you roll over your payday loan for the following month, however this is not a good idea. It means that you will owe even more interest and charges on top of what you already are unable to pay, which makes it that much more difficult for you to repay your debt. Instead, come up with a repayment plan that you will be able to afford and do reasonably with your payday lender, while still being able to pay for necessary items, such as food and keeping a roof over you and your family’s head.

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