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Pay day loans offer short term cash but the interest rate can be higher than normal. You can often pay back more than you intended to borrow. Check out our tips and advice on what to do if you're struggling with a loan or want to avoid getting a pay day loan all together.

What if I can’t pay off my loan?

There are many organisations and charities who can help you manage your money so you can get back into the black and clear your loan. Our own money management section called ‘Money Advice’ can help with tips and advice on managing your money.

Check out our Money Advice pages here.

Tell your pay-day lender

If you’re struggling or can't pay back your pay day loan, get in touch with your lender. They may be able to freeze the charges and interest you pay. This would be no later than 60 days after your last payment. You will still need to pay back your loan.

If you have a 'CPA' (Continuous Payment Authority) set up with your pay day loan, you have a right to cancel this. Find out more about how you can do this here.

Get help with your debts

There are different agencies and charities who can offer you help and advice on helping to manage your finances such as the Citizens Advice Bureau and StepChange. You can find out the different companies you can contact here.

Let us know

If you think your debts will make it a struggle to pay your rent, don’t be afraid to talk to us. We’re here to help!

Our Home Income Team can discuss your finances with you and help you to make an arrangement to clear any arrears you may have with us. Call us on 0330 1234 034.

You can find out more information if you’re struggling to pay your rent here.

Prioritise your debts

Your rent followed by your council tax and your utilities such as gas and electricity need to come first. A pay-day loan can be seen as a non-priority debt. Find out how to prioritise your debts here.

How can I avoid getting a pay day loan?

There are different ways you can avoid having to get a loan of any kind, whether it is a pay-day or a loan from your bank or buildings society. You can do this by managing your finances and planning ahead. Check out the links below to help.

Set up a budget planner

Use an online version or print off a paper budget planner. Write down your incomings and outgoings to prioritise who you need to pay and what you need to cut back on. You can also find out what you can cut back on using the ‘Cut-back Calculator’. This might save you money each month on items you may not necessarily need.

You can find out how to use a budget planner and a cut back calculator here.

Cut back

Using the cut back calculator, start cutting back on luxury and non-important items. When you're out shopping, think to yourself 'do I really need this?'

You can use the cut back calculator here.

Increase your income

If you’re unemployed, get advice from your local job centre about how you can get back into work, with a full or part time job. They can also advise on whether you’re receiving all of the benefits you’re entitled to.

Find out more about increasing your income and getting back into work here.

Money Saving Tips

We have a host of tips and advice on how to manage your money, including saving money on your utility bills and items around your home here.

Pay day loans can be seen as a tempting way to get cash quickly for life’s emergencies, but it can be smarter to avoid them and look for cheaper solutions. 

If you need any further help and advice, check out the Money Advice Service or Money Saving Expert.

Help with Pay day Loans quick links