How to pay off payday loans faster

Below you’ll find all the fastest ways to pay off your payday loans

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As payday loans are an expensive form of credit, many people who use them are keen to pay them back and clear the debt as soon as possible. This means it’s a good idea to look into how you can pay back what you’ve borrowed faster and save on interest.

However, due to the shorter timescales associated with a payday loan, many people who use them take out multiple payday loans to pay for the other loans they’ve taken, which, rather than paying off a payday loan faster, only leaves them with a loan to repay for longer!

How to pay off a loan faster

Here are our top tips for paying off any type of loan – whether it be a payday loan or a short-term instalment loan – a little bit faster. The sooner you clear your debt, the quicker your credit rating will recover.

1. Cut back on your current expenses

There may be some expenses you can cut back on or temporarily stop paying out for, to free up the cash you need to pay off that payday loan fast. These could be luxury expenses like a Netflix subscription or a weekly takeaway.

You could also look into setting up a strict budget, for things like food shopping or toiletries, to ensure you only buy what you need for the week ahead. Cutting back can provide some much-needed disposable income that can go towards paying off that payday loan faster.

2. Make small, affordable repayments

Making small payments as soon as you have spare cash is a good way of clearing your payday loan faster, instead of waiting for the repayment date. This means you will chip away at the total amount and have less of a financial burden when your wages land. This means you will need to budget carefully, as any disposable income will be used to cover paying back the cost of the loan.

If you are already struggling to repay what you owe on a payday loan, then the first thing you should do is contact the lender and speak to them about your situation. They may be able to take action, such as freezing your balance or the interest owed and should work with you to find a way for you to continue to repay your loan at a more affordable rate.

Bear in mind what impact any alternative payment plans you arrange with your lender will have on your credit report, though, as such plans are often considered a negative factor by other lenders you may apply to in the future.

3. Look for sources of extra income

If you have any unused or unwanted high value items in your home that you think you can live without, then sell them. A games console that isn’t used, a bike that’s gathering dust in the garage or even a job lot of DVDs you haven’t watched in years can be sold and the cash put towards clearing your payday loan faster.

You could also look into taking on another job or starting up a side business by offering your skills in craft or writing to earn some extra cash. Freelancer sites and shop pages such as etsy and ebay are great tools for selling things you create to earn a little extra money to put towards paying off your payday loan faster.

4. Don’t take on another payday loan

You may be tempted to apply for another payday loan to cover the costs of the one you need to pay back. While this may help you pay off the first payday loan more quickly, you’ll still have one to pay so aren’t really solving your problem.

Plus, because you’re also borrowing the interest payable on the first loan this time, it’ll cost you more. This is how cycles of debt start – taking on more debt to get out of debt simply doesn’t work, and can lead to issues down the line as you are constantly trying to keep your head above water.

5. Consider debt consolidation

It isn’t a decision to be taken lightly, but if you’re struggling to keep up with payments on too many payday loans, consolidation can make things more manageable and help you get on top of it faster.

Debt consolidation loans should only be considered if, when you take their fees and interest into account, what you have to pay back will be cheaper than – or at least no more expensive than – your current arrangements with your creditors.

Some people also move debt onto 0% interest credit cards to make repaying their debts cheaper if their credit rating is good enough, as it gives them more time and flexibility to pay off what they owe.

6. Seek expert financial help

If you are struggling to make repayments on a payday loan and feel that you’re caught in a cycle of borrowing that you want to break so you can pay off payday loans faster, seek out free and impartial debt advice from a not-for-profit organisation.

StepChange is a great resource when it comes to understanding your options and receiving free advice on your situation, and the Money Helper can also provide a host of useful information.

7. Know your rights and the rules around payday loans

When the Financial Conduct Authority took over regulation of the high-cost short-term credit sector, they set out a number of rules and regulations that all lenders have had to abide by. It’s a good idea to know what these rules are and to challenge anything you feel the loan provider you’re using isn’t abiding by.

  • Lenders cannot roll over an outstanding payday loan balance more than twice.
  • Loan providers must display at risk warnings on their website and all their advertising that makes clear what impact late repayment of a payday loan can have, and where to seek help.
  • Lenders must send those who fall behind on their payments this information sheet. This must include contact details for organisations that can help with debt.
  • Payday loan providers’ daily interest is capped at 0.8% and late payment charges can only be up to £15.
  • You can never pay more than double the amount borrowed. For example, if you borrow £100, with charges and interest you should never pay back more than £200.

Representative 89% APR

Representative Example: Borrowing: £1000 for 18 months, Total Repayable: £1853.43, Total Interest: £853.43, Interest Rate (Variable): 89.9%. Rates between 9.3% APR and 1721% APR – your no-obligation quote and APR will be based on your personal circumstances. Loan term lengths from 3 to 36 months. Subject to lender’s requirements and approval.

Sunny Loans is a registered trading name of Upward Finance Limited, who is an introducer appointed representative of Flux Funding Limited, who is a credit broker, not a lender. Loan repayment terms are 3-36 month loans.

Warning: Late repayment can cause you serious money problems. For help, go to

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