Payday loans can be extremely helpful to those in need of some financial assistance for a short period of time. If you have recently received an unexpected bill, something that must be paid very quickly, it is important to know that you have the support available to you. For some people, they might have the rainy-day fund put aside for such a scenario, or a friend or family member with some spare cash that they can lend to a friend in need. For other people though, it could be that a payday loan provides the best bet to solve a situation, without compromising your daily life. This only works however, if you know for sure that you can afford to pay back the loan and interest, in full, when your next payday comes around.

There might be occasions however, where a person who has taken out a payday loan has come into further difficulties with their employment or finances, and they are now unable to make the repayments that they have committed to when taking out the loan. In these circumstances, it is important to know what it is you need to do, and who you need to speak to.

The first thing you need to do if you realise you are unable to pay back your short-term loan, is to contact your payday loan provider. The worst thing you can do when facing a financial problem of this nature, is to ignore it. Remember, that you are never alone with any debt, and that there is help out there. Your payday loan lender must provide you with access to debt advice, even if it is through a different source.

This first step will give you the chance to discuss whether your lender has the ability to offer a freeze on payments or on interest attached to the loan amount, until you have a chance to sort your new financial situation out. In some cases, a responsible payday loan lender can offer a payment holiday for up to 3-months, allowing time to rectify the situation without the payday loan figures becoming worse and exacerbating the issues.

Once this conversation has been had, and there is a real solution moving forward, the borrower can find that a huge weight has been lifted, allowing them to focus on finding a solution to the problem at hand, with the complete peace of mind that the payday loan will be there when things are solved, and not cause further issues.

Your payday loan lender is legally obliged to provide you with free sources of independent debt advice, they must allow some form of debt and payment suspension, allowing for a reasonable period of time to develop a new payment plan, and they must treat you fairly, with a discussion about charges and interest and whether they can be frozen. If you feel that you have not been dealt with fairly you can put in an official complaint, before moving to the Financial Ombudsman if this complaint is not dealt with in a fast and effective manner.