Payday loans are not a new concept in the financial world anymore. With the surprising increase in the financial crisis and difficulty in making both ends meet for people, they have become an easy way out. Moreover, the tiring and complicated procedure of getting a loan from a bank also encourages this practice to some extent. Add to it the fact that many times the bank simply denies your loan requests and you are left with no option but to go for payday loans.

There are no specific restrictions on the amount of money you can borrow as a payday loan. However, you will have to return it at a specific time and the interest rates are higher. Moreover, in case you fail to return the money on time, a certain amount of money is added to it as a fee. Therefore, it is always necessary that you repay your payday loans.

Bad Credit History

Nothing damages your chances of getting a loan more—payday or otherwise—than a bad credit history. When someone keeps on delaying repaying the loans, bad credit keeps on piling up. It is extremely difficult to secure any type of loan in the UK if you have a long bad credit history. Even bankruptcy cannot benefit you in the long term in this case.

However, even with a bad credit score, payday loans are not only easy to get but they are a very convenient option if you are looking for short-term loans. Moreover, the loan requests are reviewed within a day and the amount is transferred to your account immediately. Since all the transaction is done online, getting payday loans is literally on your fingertips.

With such convenience comes a greater responsibility. You have to be careful about your payday loan repayments since you must return them in time.

Repaying your Loans

Repaying the payday loans is extremely important since the interest rates are higher and the fees keep being added due to delays. The due date is usually decided beforehand. It depends on your payday, in most cases. However, you can set other conditions with your lender as well.

The lenders will notify the borrowers at least a few days prior to the due date. This is a reminder to avoid any useless and unneeded delays in the repayment.

In most cases, thirty days are granted to the lender for repayment. However, in some cases, it can be extended to at least sixty days as well. However, this extension is not easy to get. It is usually granted if the borrower has run into some kind of emergency. They should convey the problem to their lender beforehand to avoid any bad feelings and extra fees.

Another major concern in repaying method is that if the account does not have the required amount, an extra fee is added by the bank as well. The borrower will have to pay that extra money as well.

What if you fail to payback

In case if you fail to pay back your payday loan because of some emergency, then you can follow the advice as given below:

Contact your Lender, ASAP

In case you fail to make the repayment, contact your lender to avoid any further confusion, instead of neglecting the matter. You can talk to them and settle the matter in a simpler way. You must know that you have the law on your side.

  • The lender cannot harass you with continuous phone calls and messages.
  • They must treat you in a fair manner by allowing you a reasonable time for repayment.
  • Until the matter is resolved, the interest and extra fees must be frozen
  • You should be allowed to repay a part of it now

Always keep a copy of all your conversation with your lender since all of it is a proof that you had tried to contact the lender.

Recurring Payments

In case you cannot repay your loan as yet, then call your bank and cancel the recurring payment. This will stop your lender from taking money from your account. It is essential since you may not have enough money for food or other necessities if the lender takes away money from your account.

Make sure that you inform your lender about it beforehand.

Never say yes to Rolling Over

Never accept your lender’s offer to roll over. It will only add to the amount of money that you will be paying later. This means greater interest and fees. It is better to go for a free debt adviser than accepting this option. In fact, it is your lender’s duty to provide you with a good debt adviser.

A Free Debt Adviser

Many debt advisers are available in the UK free of charge. They will give you free and confidential advice. Some of these are given below:

Citizens Advice – England and Wales

Citizens Advice – Scotland

Citizens Advice – Northern Ireland

These debt advisers can help you get your debt in control. They will also talk to the lender and solicit your matter with them in a more appropriate and compelling manner.

Moreover, your lender is never allowed to discuss your loan with your family and employer. In fact, they are not supposed to call you during work hours unless they have your permission to do so.

Always remember that the law is on your side and that you can talk to the lender beforehand.

In case you have no chance of being able to repay the money, then there are other services as well, for example, debt charity.

If you have done all of the above, then your lender is obliged to give you a certain amount of time to pay your loans. They are not supposed to hire a debt collector until they have given you that option first.

If you want to borrow a short term loan and are looking to compare payday lenders, then visit

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