It’s never a good idea to be late on paying back a payday loan, but there are a number of things to keep in mind if it can’t be helped. By following these tips you will potentially save yourself a lot of money. Being even a single day late on paying back your loan can quickly escalate into a nightmare, so you will need to know how to keep the damage to a minimum. Being late on paying back your loan isn’t the end of the world, but you will need to be prepared for what is to come.

Ask the Lender for More Time

If you aren’t late on paying back your loan but expect to be, you should try asking the lender for more time to pay it off. A majority of these lenders are willing to work with those who can’t pay their loan back on time, but not all. The worst the lender can do is say no, so it’s definitely worth asking. You don’t want to simply ignore the debt if you cannot pay it back by the agreed upon date. The amount of additional time you get will depend on the lender. You won’t have forever to pay back your loan, but an extra week or two could help you immensely.

Tighten Your Belt (Financially Speaking)

When you are past due on your payday loan, you will need to tighten your belt and start saving all the money you can. If you usually go out to eat once or twice a week, don’t do it at all until you have the balance of your account cleared completely. There are tons of small ways that you can save money, and it’s important that you try as many of them as possible. Cut back on all of the non-essentials in your life so that you will be able to pay back your loan as soon as possible.

Cancel the Recurring Payment

You should also seriously think about getting in touch with your bank to cancel the recurring payment that enables your lender to take money out of your checking account. The best time to do this is the day before the repayment is scheduled, and you’ll need to contact your lender to let them know about this action you are taking. It is also a good idea to document the exact date and time that you told your bank to do this. If this wasn’t effective and the lender continues taking out money, you will want to call them up directly to complain. The bank should do something to resolve this problem, but it’s never guaranteed.

Choose a Repayment Plan

Most lenders will tell people who are late on paying back their quick loans to just “roll it over” for an extended period of time, but this will only lead to more fees and charges on your end. Instead you will want to think about working with the lender to come up with a repayment plan that works for you. This plan will enable you to pay off your loan without having to worry about all sorts of additional fees piling up.

Contact a Debt Adviser

A professional debt adviser can help you figure out how to deal with the payday loan that you cannot pay right now. There are all sorts of services that can be of assistance in this type of situation, so you will need to spend some time looking into them. You will need to make a point of letting your lender know that you are working with one of these professionals. It is important to keep the lender in the loop at all times, because otherwise things could take a very ugly turn very fast. A debt adviser will be able to review your options with you and help you select the right one.

Don’t Put up with Lender Abuse

Your lender should never harass you at work or talk to the people in your life about your debt even if you are late on paying back the loan. If the lender has started doing any of these things, you will need to make a formal complaint against them right away. This kind of behaviour should never be tolerated. Some people believe there is nothing they can do or that they deserve it, but this is not the case at all.

The Financial Ombudsman Service will provide you with a way to complain about an abusive or harassing payday loan lender. If this agency determines that you have been treated unfairly in any way by the lender, you could receive compensation. While most payday loan lenders don’t do these things, it does sometimes happen. You should never hesitate to make this sort of formal complaint if you find yourself in this type of situation.

You Cannot be Put in Jail

It is important to keep in mind that there are limits to what can happen to you if you don’t pay back your loan. While you cannot be put in jail, the lender can choose to take you to court to force payment. Some lenders make a lot of threats to get their money, and some will even lie about what could happen if you do not pay them immediately. The more you know about the reality of all this, the more calmly you can handle the situation.

Try Negotiating

Going to court over an unpaid loan is never an ideal option for either party involved, so you will always want to try negotiating first. The lender will most likely be open to discussing terms and setting up a repayment plan, because they want to get the money you owe them. If the lender is not open to negotiations at all, there isn’t a whole lot that you can do. Whatever you do though, make sure to stay calm. You never want to make any drastic decisions out of emotion, because it won’t end well.