If you can’t afford the repayment, things can get out of hand quickly. If you fail to repay, you’ll owe:
the outstanding balance of the loan,
interest on the loan, and,
and any fees or charges
If you're considering a payday loan, think carefully about whether you can afford the full cost of the repayments. Look at alternatives to payday loans before committing yourself.
Your lender should have checked that you could afford the payments when you took out the loan. If you don’t think they did this properly, you could make a complaint. This could mean that interest and charges are reduced or written off.
If you don’t pay, the lender will contact you and they may use a debt collection agency to try to recover the money you owe.
It’s important to understand that debt collectors acting on behalf of payday lenders have no special powers. Find out more about what your creditors can and can’t do.
If you’re worried about an unpaid payday loan or any other unmanageable debts, get in touch with us for free and confidential debt advice.