When you’re in debt, sometimes it can be difficult to pay it off. In some…
If you don’t have the money to pay back your payday loan? There are a number of things that you can do. Follow the steps below.
What You Should Do When You Can’t Pay Back Your Payday loan
When you have a payday loan that you can’t pay back, it can be very stressful. However, don’t panic, there’s a few things you can do to sort it out. To help, we’re going through the things you need to do when you’ve got a payday loan you can’t pay.
Speak to your payday loan company
The first thing you need to do is talk to the payday loan company, to tell them what’s happening. Explain that you can’t pay your payday loan, and tell them why. The payday loan company then has to do certain things by law. First of all, they have to tell you where to go so you can get debt advice. Then, they need to stop asking you to pay for a little while. This will allow you to sort out how you’re going to repay the payday loan. You should speak to a payday loan adviser if you’re unsure on how to pay the payday loan back. They’re also not allowed to charge you interest or make you pay anything until you’ve sorted things.
They’re also banned from constantly bothering you for the money. And they have to accept anything you can pay, even if it is just a small amount each month. Make sure you keep copies of anything they say to you. This includes any emails, letters or text messages. If they phone you, make sure you note down what was said. By doing that, you can prove there’s been communication between you and them.
Cancel the payments which are being made
If you’re having trouble affording everything, then you should cancel the payments to the company. When you took out the payday loan, the company will have spoken to your bank. They’ll have set up an agreement which takes money from your account every month. To stop this, you’ll need to ring up your bank and ask them to cancel the payments. Make sure you write down the two important dates. These are the date you cancelled the payment and the date you told the payday loan company. Just remember, you’ll still have to pay it all back at some point.
Make sure you don’t roll your payday loan over
When you talk to the payday loan company, they’ll want to offer to roll over your payday loan. This means that they’ll put it back to the next month. This isn’t something you want to happen, so make sure it doesn’t. This is because you’ll have to pay interest on that month still. The best thing to do instead is to get advice. Find out how you can best pay back your payday loan.
Overall, that’s what you should do when you have a payday loan you can’t pay. It can be a stressful time, but try not to worry. Once the payday loan company has stopped bothering you, then you can come up with a plan. Contacting a professional is the best way to make sure everything gets sorted. Once you’ve spoken to a professional, they’ll be able to help you begin paying back your payday loan.
If you’re thinking about setting up a temporary arrangement, check out my article on this here.