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Payday loan debt help

If you’re struggling with your finances and considering applying for a payday loan, you should first consider the alternative solutions on offer. If your finances are getting on top of you and you are finding it hard to manage, PayPlan can offer quick, free and professional advice to help you find a better solution and avoid taking on additional debts.

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Payday loans are difficult to stay on top of and there are alternative solutions that mean avoiding such extreme consequences:

What is a payday loan?

A fairly recent financial innovation, a payday loan is a short term, unsecured loan for people who find themselves with too little money each month to cover their outgoings due to either low income or an unplanned expense. The amount you receive can range from as little as £50 to well over £1,000. However, you will always be required to pay the full sum of money back by your next payday, which makes it a difficult debt to manage.

What’s more, because the representative APR of a payday loan is high, interest charges can quickly turn this reasonable short term solution into an overwhelming debt.

If you are struggling to repay a payday loan and are worried about debts spiralling out of control, contact PayPlan today. 

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How does a payday loan work?

No matter how much money you have borrowed, all payday loans have to be repaid on the following payday. They should never be used for long term borrowing. However, more often than not, we see them transform from a quick fix solution into a long term problem.

Typically, lenders will take your bank card details in order for your loan to be transferred immediately. What many aren’t aware of is this also gives them the ability to take the loan repayment automatically on the due date. Therefore, to avoid extra interest and fees from your bank, it is your responsibility to have the full amount you owe available in your account on the due date.

As payday loans were designed to be taken over a short time frame, you should only consider using one to address very short term lending. In principle, you should only use this platform if:

To help your understanding of how payday loans work, see the advantages and disadvantages below:

Advantages of payday loans

Disadvantages of payday loans

Payday loans are only worth considering if you are in the right situation to benefit from them. For long term debt solutions, you should avoid a payday loan. If you are struggling to make ends meet and want to see what the best answer for your needs is, contact PayPlan today for free advice.


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What if I can’t repay my payday loan?

If you can’t repay your payday loan then you have three options:

If your lender allows you to rollover your repayments, they will often increase the interest which will make the amount you owe larger. Similarly, taking out another payday loan is hard to manage and if you don’t keep track you will soon see your debt mount.

However, when you contact PayPlan, we will provide you with free, expert debt advice and immediately assess your situation to decide which of our debt management solutions is best for you.

We have twenty years’ experience and have developed a well-established method of dealing with creditors, so we will always contact them on your behalf. When contacting them, we aim to get them to agree to freeze interest charges and reduce monthly repayments based on what you can reasonably afford to repay.

If you are struggling with your finances, or have a payday loan you don’t think you will be able to repay, contact PayPlan today for free advice and expert solutions.

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What is the best way to pay back multiple payday loans?

Your payday loan debt can easily spiral out of control; if you can’t afford to pay the debt back on time there is often pressure on you to take out another payday loan to pay off the first one. This can become a never-ending cycle which will quickly mount up your overall debt.

Normally, if multiple payday loans have been accumulated, then payday debt consolidation might be attempted. Payday consolidation is effectively one large payday loan used to repay the others. Although this can bring short-term respite, if the underlying reasons for getting into debt aren’t addressed, then the debtor is likely to end up defaulting on the large payday loan repayment. If you go down this route, you will most likely have to pay a significant amount of interest.

If you have or are considering multiple payday loans, then contact PayPlan today for free, expert advice. We have a number of alternative solutions that can solve your debt problems quickly and securely

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How do I avoid Payday Loans?

More often than not, payday loans are obtained to cover unexpected spends. Therefore, it is important you do what you can to reduce your monthly expenditures, including:

For immediate and free advice, call PayPlan free on 0808 271 3284 or use our Debt Help Form to submit your debt problem online. 

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Example IVA

In this typical example, we arranged an IVA for our client who was struggling to repay his debts. His payments are now more affordable!

  • Debt: £20,000
  • Creditors: 3
  • Was paying: £520 per month
  • Now paying: £120 per month
  • Written off: £12,000
See examples IVA advice

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