Payday loan debt help
If you are struggling to make payments on any type of loan, including payday or short-term credit products then it’s important you seek help.
Seeking free and impartial debt advice is the first step to understanding your finances and working towards clearing your debts and there are a number of companies out there who are ready to help.
Seeking the support of friends and family is also important. Even if they can’t help you financially, they can offer emotional support to take your mind off the stress. Read on to find out more about payday loan debt help and what to do next.
3 Important steps if you are late on payments
If you are struggling financially and have incurred late payments on a payday loan, there are some steps you can follow now before seeking further free and impartial debt advice from a not-for-profit service.
- Do not take out another loan –It’s very important that you do not borrow any more money that could stretch your finances even more thinly. You may be tempted to take another payday loan out to cover a late payment, but this will lead to a cycle of debt that could be difficult to get out of.
- Notify your creditor –Contact your lender and let them know you are struggling to make payments. They should work with you to help you get back on track or find another way to repay your balance at a more affordable rate. Ask them about their forbearance options. You should tell them how much you can afford to pay each month, although they may require you to complete their own income and expenses forms to make sure that the amount you suggest isn’t still too stretching.
- Cancel your continuous payment authority (CPA) – Many lenders use continuous payment authority, which allows them to collect the money owed directly from your card. To cancel your CPA you will need to get in touch with your lender and instruct them to do this, then notify your bank. Then, once you have agreed what you will be paying each month instead, you can set up a payment to your lender that works for you, whether this means wiring the money to their bank account every month, calling to pay by card, or reinstating CPA so that they can automatically collect your payments again. It’s important you agree a new method of payment when you cancel your CPA.
Who to speak to about payday loan debt assistance
A free, not-for-profit service is the best choice. They can offer all the same advice a paid service would and point you in the right direction when it comes to tackling your payday loan debt. They can help you with everything from how to manage your money to how to consolidate payday loans to make your payments easier to deal with. Here are some of the services you could get in touch with:
StepChange – This debt charity offers free advice online via its Debt Remedy service but also has a team of advisers on hand via phone or live chat that can answer any questions you may have.
- Website: https://www.stepchange.org/
- Call: 0800 138 1111
Money Advice Service – This free Government run service is online based and features a whole host of informative articles to help you understand your debt and what to do next. You can also talk to free debt advisers via web chat or call.
- Website: https://www.moneyadviceservice.org.uk/en
- Call: 0800 138 7777
Citizens Advice – You can contact your local Citizens Advice Bureau (simply search for their details online or you can use the website as a helpful guide when dealing with debt.
- Website: https://www.citizensadvice.org.uk/
National Debtline – This debt advice charity is an extension of the Money Advice Service. A team of advisers can be contacted via web chat, email or phone, so you can talk about your debts in a way that you’re comfortable with. You can also access the My Money Steps service through National Debtline, which offers free debt advice 24/7 and creates a personal action plan for you to follow, once you’ve filled in your details and current financial situation.
- Website: https://www.nationaldebtline.org/
- Call: 0808 808 4000
PayPlan – This is a debt management company who can handle creditors and repayment plans on your behalf. PayPlan offers free debt advice on their site, however it’s important to note that if you use one of their IVA or DMP services that a fee may be included in the cost of your plan to set it up.
- Website: https://www.payplan.com/
- Call: 0808 250 2051
Money Advice Scotland – If you are based in Scotland then contact this charity for help and guidance with debts. You can talk to an adviser on the site or find your local adviser in your area to speak to.
- Website: http://www.moneyadvicescotland.org.uk/
- Call: 0141 572 0237
Advice NI – If you are located in Northern Ireland this charity employs debt advisors who can offer free advice when it comes to debt, as well as benefits and housing issues.
- Website: https://www.adviceni.net/
- Call: 0808 802 0020
Need a speedy Loan?
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Looking for further information on lending options?
If you want to know more about short-term loans we have a number of guides available that may help. Take a look at these below.